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5 Dec 2014
EUR/USD rises sharply from two-year lows – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, notes that the EUR/USD pair rose sharply on Thursday after falling to two-year lows, and sees a possibility of it re-testing 1.2340 levels today.
Key Quotes
“The EUR/USD pair rose sharply from two-year lows to finish higher on Thursday at 1.2382 levels. The pair did clock a high of 1.2357, although it failed to sustain gains above the 5-DMA and the 10-DMA levels. The 5-DMA level at 1.2383 was breached today, although the pair once again failed to sustain gains and declined to 1.2367 levels.”
“The daily RSI continues to stay bearish at 41.80 levels. Meanwhile, on the hourly charts, a sharp up move witnessed yesterday pushed the RSI into the overbought zone. Moreover, the hourly RSI is on the verge of breaching the 50.00 levels on the downside. Thus, the pair may re-test 1.2340 levels during the European session.”
“However, given the strong recovery in the pair yesterday, the likelihood of it moving upwards is more so long as it trades above 1.23 levels. , Thus, a fresh demand for the Euros can be anticipated on the dips, with the immediate upside capped around 1.24-1.2450 levels. Meanwhile, the EUR bears may be back if the pair ends the week below 1.2280.”
Key Quotes
“The EUR/USD pair rose sharply from two-year lows to finish higher on Thursday at 1.2382 levels. The pair did clock a high of 1.2357, although it failed to sustain gains above the 5-DMA and the 10-DMA levels. The 5-DMA level at 1.2383 was breached today, although the pair once again failed to sustain gains and declined to 1.2367 levels.”
“The daily RSI continues to stay bearish at 41.80 levels. Meanwhile, on the hourly charts, a sharp up move witnessed yesterday pushed the RSI into the overbought zone. Moreover, the hourly RSI is on the verge of breaching the 50.00 levels on the downside. Thus, the pair may re-test 1.2340 levels during the European session.”
“However, given the strong recovery in the pair yesterday, the likelihood of it moving upwards is more so long as it trades above 1.23 levels. , Thus, a fresh demand for the Euros can be anticipated on the dips, with the immediate upside capped around 1.24-1.2450 levels. Meanwhile, the EUR bears may be back if the pair ends the week below 1.2280.”