The single currency recorded its worst performance against the dollar since January, losing over two figures during yesterday's session to a closing price of 1.1107. The pair traded at levels of one-month low at 1.1100, while the highest point was reached at 1.1350. The ECB left its monetary policy unchanged yesterday, but Draghi’s intention to continue with incentives later in the year dragged the euro. The price went below average values, while the index of relative strength hints oversold market. Confirmed break of 1.1080 will enable further decline.
Yesterday the EURUSD plunged 233 pips after the ECB Monetary policy statement and press conference. The pair made with a wide range day and closes in the red near the low of the day a few pips away of the 200-day moving average.
After yesterday strong downward move, today we may expect a small pullback.
The key levels to watch are 1.1237 (Resistance), the 200-day moving average at 1.1075 (support) and 1.0900 (support).
Wow! What a turnaround on the eur/usd. The question is, is the usd currency that much ahead of the euro in value?. At the moment it seems like that. Next week can be to be a totally different story when it comes to the eur/usd. As traders we have to be prepared that it can change very quickly. Protecting our self with good trading ethics and basics rmm strategies is a good choice at the moment. I read some very good info on this site about protection the trading account, can be googled with RMM Robot and valuable information will be available.
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