The single currency registered quite volatile start of the week on Monday. In the early hours the bulls prevailed and thus the pair reached peak for the day at 1.0945. Subsequently, however, the dollar prevailed and ultimately crossed the finish line at 1.0830. Meanwhile, the first support at 1.0795 was pierced after the currency hit bottom for the day at 1.0781. If expectations for the continuation of the negative trend justify, EUR/USD will test key level at 1.0762.
I was watching for the change over usually around 3.45 when traders in the European session close out of positions, this morning selling off,which usually reverses at London close,missed the entry at 710.
The single currency recorded a new drop against the dollar on Tuesday. Euro justified the negative expectations and thus plunged against the dollar for the third consecutive session. Consequently the support at 1.0795 was overcome as the pair scored bottom for the day at 1.0710. If bearish sentiment continue in the future, currencies will test key level at 1.0690. Trading on Tuesday started at a price of 1.0829. The trend was mostly bearish and the finish line was crossed at a rate of 1.0747.
On yesterday session the EURUSD fell with a high range and closed in the red, near the low of the day, in addition managed to close below previous day low, suggesting a continuation of the strong bearish momentum.
The pair closed for the first time below 50-day moving average that is now acting as a dynamic resistance.
The key levels to watch are: the 10-day moving average at 1.08768 (resistance), the 1.0819 (resistance), the 50-day moving average at 1.0800 (resistance), a Fibonacci extension at 1.0703 (support) and a daily support at 1.0622.
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