FXStreet (Edinburgh) - The EUR/USD managed to bounce off fresh ytd lows on Wednesday and partially recovered the ground lost, although the 1.3400 level still remains a tough hurdle.
In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “has still not managed to close below the base of its monthly cloud located at 1.3338. We note the divergence of the RSI and the hammer on the candlestick chart – both suggest that we will see a near term rebound. Provided that rebound is contained by the 3 month downtrend this will have no impact whatsoever on the bearish chart.
Emmanuel Ng, FX Strategist at OCBC Bank, added, “Ahead of the ECB today (1145 GMT), the EUR-USD is trading on the wrong side of 1.3400 with the next visible support only expected towards 1.3300 while 1.3450 should continue to cap”.