Forex: EUR/USD finds support at 1.4305 and trades back above 1.4330

  on

FXstreet.com (Barcelona) - The Euro's decline from 1.4350 after the US data releases has found support at 1.4305 in the last hour with the pair bouncing back above 1.4330. Currently the pair is trading around 1.4325/35, 0.55% below today's opening price action at 1.4407.

According to the FastBrokers Research Team, the EUR/USD is trading lower in continued consolidation: The EUR/USD is continuing its consolidative pattern despite sizable gains in gold. We recognize similar behavior in the GBP/USD and the EUR/GBP is moving sideways. Investors are digesting a wealth of news and data. Yesterday's U.S. ADP number and Services PMI both printed slightly below expectations while EU Industrial New Orders also disappointed.

FastBrokers concludes: the EUR/USD still faces multiple downtrend lines along with the psychological 1.45 level, 1/05, 12/23, and 12/18 highs. Hence, some challenging near-term topside technicals are in place due to the EUR/USD's downturn in December. As for the downside, the EUR/USD has technical cushions in the form of our 1st and 2nd tier uptrend lines along with intraday and 1/04 and 12/22 lows. The EUR/USD is still trading well below our 3rd tier uptrend line that runs through July lows, meaning the currency pair could be in for more losses over the medium-term towards the psychological 1.40 should U.S. data continue to outperform.

.

Join the Discussion