EUR/USD takes a breather in Asia

[jacobfx]

Thursday’s trade saw the Euro as well as equity markets reach monthly highs, as confidence and optimism attracted investors to riskier assets, pushing EUR/USD into the 1.4340 price zone.

Technically speaking, “Hourly chart shows indicators flat and losing momentum, as well as 20 SMA that anyway contains price slides. Market sentiment may favor the upside in the pair once above mentioned high and trend line, with 1.4600/20 as next bullish target for the cross,” explains Valeria Bednarik, Chief Analyst at FXstreet.com.

At the time of writing, EUR/USD is quoted in the 1.4480 price zone, 20 pips below its Asian open. To the downside, Valeria identifies support levels at 1.4480, 1.4445 and 1.4410. To the upside, resistance levels lie at 1.4540, 1.4585 and 1.4610.

[MT4Coder]

Although the single pair rose marginally to 1.4522, as the currency pair has retreated on the back of intra-day selloff in cable, suggesting consolidation below said resistance would take place ahead of U.S. opening and pullback to the Kijun-Sen (now at 1.4426) cannot be ruled out, however, still reckon the Ichimoku cloud top (now at 1.4352) would limit downside and bring another rise later. A break of said resistance would extend recent upmove from 1.4073 to previous resistance at 1.4552, however, near term overbought condition should limit upside and price should falter below 1.4600, bring another retreat later.

In view of this, we are still looking to buy euro on pullback. Only break of yesterday’s low at 1.4320 would abort and signal top is formed and risk weakness to 1.4280 and possibly test of the Ichimoku cloud bottom (now at 1.4265) before prospect of another rally.

[multibank]

hope EURO get over

[jen]

Originally Posted by multibank

hope EURO get over

Didn't really understand if that was a positive or a negative message.

[mybaby]

Originally Posted by jen

Didn't really understand if that was a positive or a negative message.

Yeah. me too. lol. Anyway, thanks for the info.

[jen]

Originally Posted by multibank

hope EURO get over

What?! Why?