FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik remarks that the disappointing German ZEW reading for July pushed the EUR/USD down to the 1.3335 level in the European morning.
"Technically, the hourly chart shows price well below its moving averages, with 20 SMA presenting a strong bearish slope and crossing below 100 and 200 ones, which supports the dominant bearish trend."
"Notwithstanding, indicators bounce from oversold readings, supporting current upward corrective movement, that may extend up to 1.3400 without really affecting that trend."
"In the 4 hours chart indicators are biased lower, yet lacking clear bearish momentum at the time being, probably due to the lack of volume over these last few days."
"With market for the most short in the pair, the break lower may produce shallow results, yet 1.3295 continues to be the immediate bearish target once 1.3330 gives up."