EURUSD Consolidation Ahead?

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HotForex Market Review
HotForex Market Review

On a day of very few events, the Euro has been gaining significantly against the Dollar, which recently saw the near inversion of another yield, as its 7-year Treasury is now trading close to the 1-year values, even surpassing it and creating an inverse curve on some occasions. At the same time, the difference between the 10-year and the 1-year yields revolves just around 0.10, as fears about the size of the slowdown in the US economy continue.

The EURUSD pushed north of 1.13 earlier today and proceeded to break the 200HMA level at 1.1315 later on, despite some intra-day weakness. At the moment, the pair is trading at around the 1.1328 Resistance level, although a stronger Resistance level would stand at 1.1341, which bounced off on February 13. Indicators are showing signals of weakening though, as the Stochastics indicators suggests a slowdown, something also supported by the MACD as the bars decline after the last hour’s peak, with the RSI shaved off the oversold area and currently moving downwards. The next Support level is all the way back down to 1.13, which would most likely indicate a very large reversal instead of a correction.

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Dr Nektarios Michail

Market Analyst

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