EUR/USD Technical Analysis: March 17, 2017
The liberal party got the victory in the Netherlands vote casting which made the European currency to stabilize. The American dollar stayed in the pressured area considering the remarks made by Janet Yellen recently. Moreover, the Euro region’s Consumer Price Index have met expected results which catered minor support towards the EUR.
The market rally seems overdone. The market mainly presented a bullish sentiment for the euro. The rally occurred on Wednesday caused the major to stalled its activity the following day. While the spot nearly touched the level 1.0750 during the night trades but the upward impetus did not last long. The price stayed within its renewed highs at night but the morning session of EU lead some selling pressure. The nation’s currency further weakened on the first part of the day reaching 1.0700.
The EUR/USD rebounded higher through the 50-EMA and take 200-EMA out as set out in the 4-hour chart. The pair developed well over the moving averages. The 100 and 50-EMAs ascended while the 200-EMA established a neutral stance seen in the mentioned chart. Resistance is positioned at 1.0750, support sits at 1.0700.
The MACD histogram displayed a buy signal. RSI is situated near the overvalued grounds, supporting for a lower trend.
The decline currently happened was regarded as corrective. We see the price focus now at 1.0700, advancing to 1.0650.
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