12 Aug 2015
EUR/USD holds remarkably well PBOC-led risk-off tide
FXStreet (Bali) - EUR/USD saw a knee-jerk reaction to the new devaluation on the Yuan reference rate today (-1.6%), initially tanking in the tune of 20 pips before a vigorous bounce towards session highs of 1.1062.
EUR/USD technicals
Valeria Bednarik, Chief Analyst at FX, shared her technical view on the pair, noting: "The EUR/USD pair broke above the daily descendant trend line coming from March high of 1.1435, but gave back most of its intraday gains to end the day back below it, which should discourage longer term buyers."
"The short term technical picture is still positive, as the 1 hour chart shows that the price holds above its 20 SMA and the technical indicators above their mid-lines, lacking however, directional strength, while in the 4 hours chart the technical indicators have turned sharply lower after approaching overbought territory, although the price remains above a bullish 20 SMA."
EUR should come under renews pressure sooner or later
By assessing the latest CoT report, one can notice open interest increasing up to last Tuesday, with total lev accounts adding business to the downside. Ccials were buying as expected but nothing to see as price kept dropping. Lev funds and dealers saw new business short and long respectively, adding to the EUR bearish case. Even asset managers broke the uptrend pattern by increasing shorts.
EUR/USD technicals
Valeria Bednarik, Chief Analyst at FX, shared her technical view on the pair, noting: "The EUR/USD pair broke above the daily descendant trend line coming from March high of 1.1435, but gave back most of its intraday gains to end the day back below it, which should discourage longer term buyers."
"The short term technical picture is still positive, as the 1 hour chart shows that the price holds above its 20 SMA and the technical indicators above their mid-lines, lacking however, directional strength, while in the 4 hours chart the technical indicators have turned sharply lower after approaching overbought territory, although the price remains above a bullish 20 SMA."
EUR should come under renews pressure sooner or later
By assessing the latest CoT report, one can notice open interest increasing up to last Tuesday, with total lev accounts adding business to the downside. Ccials were buying as expected but nothing to see as price kept dropping. Lev funds and dealers saw new business short and long respectively, adding to the EUR bearish case. Even asset managers broke the uptrend pattern by increasing shorts.