EUR/USD rebound fails to gain traction
James Chen October 16, 2014 6:11 PM
<p>EUR/USD (daily chart shown below) has rebounded from its two-year low of 1.2500 that was hit two weeks ago in early October, but its gains […]</p>
EUR/USD (daily chart shown below) has rebounded from its two-year low of 1.2500 that was hit two weeks ago in early October, but its gains thus far have been limited.
This occurs within the context of a steep bearish trend that has caused the currency pair to plunge more than 10% within five months.
Wednesday’s price action extended the rebound to hit a high of 1.2886, just under the steeply downward-sloping 50-day moving average, before pulling back.
Despite the current EUR/USD rebound and US dollar dip, the overall trend and directional bias for the currency pair remain bearish.
Any extension of the current rebound should be firmly limited by the major 1.3000 resistance and psychological level.
To the downside, the next major support targets below the noted 1.2500 low reside around the 1.2450 level, last hit over two years ago, followed by the 1.2300 level.
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