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EUR/USD Signals Further Downside After the ECB Presser

Today, the ECB held rates as expected did not add further stimulus measures despite factors such as 
1) declining inflation
2) Italy falling back into recession

3) credit crunch issues
4) Ukraine tension


img: ECB President, Mario Draghi

In Draghi's press conference he reminded the markets that some of these problems are not going to be solved with any central bank action, though he kept QE on the table. 

EUR/USD was consolidating ahead of ECB's statement and presser. Then there was a failed attempt to break above the day's high at 1.3390, which followed with a sharp decline seen in the 1H chart.

EUR/USD 1H Chart (8/7)

(click to enlarge)

The 1H chart shows that the bearish trend, and momentum is maintained even in the near-term. Moving averages are in bearish alignment with price trading under them. The RSI has tagged 30, then stayed below 60, showing maintenance of the bearish momentum in this time-frame.

The next support in the short-term could be the 1.33 Nov. 2013 low. Below that the 1.31-1.3105 support, and Sept. 2013 low will be the next level to monitor for buyers.

EUR/USD Daily Chart (8/7)

(click to enlarge)

There might be some consolidation once price approaches 1.33, especially with the RSI in oversold conditions in the daily chart. We should limit our bullish outlook for now to the 1.3475-1.35 area, which was previously a key support area.