EUR/USD remains a sell on spikes – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, explains that single currency is being still controlled by sellers who favour shorting the pair on spikes, with the pair now retreating from the 1.0780 high.

Key Quotes

“The EUR/USD pair bounces from its lowest level in 12 years, having been so far as low as 1.0721, on the back of escalating concerns related to Greek debt woes.”

“The dollar's latest short term slide followed a headline coming from the US White House advisor, expressing concerns over dollar strength affecting economic growth.”

“Nevertheless, temporal bounces are seen as selling opportunities in the pair, already retreating from the high of the spike at 1.0780, now the immediate resistance.”

“Technically the 1 hour chart shows that the technical indicators are aiming to bounce from extreme oversold levels, albeit the pair develops well below a bearish 20 SMA.”

“In the 4 hours chart the technical indicators also head north, but remain in extreme oversold levels, as the RSI holds around 23.”

“Support levels: 1.0725 1.0690 1.0660”

“Resistance levels: 1.0780 1.0815 1.0850”