Technical analysis – EURUSD hourly- euro off ECB cut lows but still in downtrend
November 8, 2013 9:36 am
(click to enlarge)
The euro managed to bounce back from extremely oversold conditions on the hourly chart, indicated by an RSI reading of 12, following the knee-jerk reaction to the surprise quarter-point interest rate cut by the ECB.
The low immediately after the rate cut was 1.3293, while perhaps a more reliable reading reflecting active two-way trading was 1.3324. This level should provide short-term support on any fresh euro down move (Support 1 on the chart).
On the upside, the 1.3449 is the first level of resistance and then the 1.3545 resistance level, before the rate cut. The 50-hour moving average at 1.3466 could also be somewhat challenging to break on any upmove.
The price action is below the 50-period moving average which indicates a bearish trend. The RSI at 40 is also in bearish territory.
(click to enlarge)
The euro managed to bounce back from extremely oversold conditions on the hourly chart, indicated by an RSI reading of 12, following the knee-jerk reaction to the surprise quarter-point interest rate cut by the ECB.
The low immediately after the rate cut was 1.3293, while perhaps a more reliable reading reflecting active two-way trading was 1.3324. This level should provide short-term support on any fresh euro down move (Support 1 on the chart).
On the upside, the 1.3449 is the first level of resistance and then the 1.3545 resistance level, before the rate cut. The 50-hour moving average at 1.3466 could also be somewhat challenging to break on any upmove.
The price action is below the 50-period moving average which indicates a bearish trend. The RSI at 40 is also in bearish territory.
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