EUR/USD Technical Analysis: March 14, 2017
The single European currency attained a monthly high against its American counterpart after reports regarding ECB’s consideration on the predicted rate hike prior to the end of Eurozone and Germany’s QE Economic Sentiment from ZEW which provided support for the euro on Tuesday.
The buyers were able to resume its upward impetus during Monday night but the EUR weakened subsequent to the level testing around 1.0700 and kept intact the pressured area of profit-taking. The spot swing towards the downside and cut through the 1. 0700 region during the morning EU session. Having broke the region, the major resumed to move lower touching 1.0665 in the latter part of trading.
The 4-hour chart presented the price lead the moving averages higher and extended its development on top of it, while the 50-EMA also turned to the upper point reaching the 100-EMA. Both 100 and 200-EMA appeared neutral as shown in the same timeframe. Resistance is found at 1.0700, support is at 1.0650.
The MACD histogram weakened which further implied a momentary weakening of the buyers. RSI indicator departed from the overvalued grounds and favoring a lower move. The next possible scenario is the downward moving through 1.0650 mark. The price would likely approach 1.0625on profit-taking.
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