It is difficult to determine where we go from here in the short-term, with the market seemingly caught in some choppy bearish consolidation, but also at risk for a bounce given the oversold technical studies.
EUR/USD: It is difficult to determine where we go from here in the short-term, with the market seemingly caught in some choppy bearish consolidation, but also at risk for a bounce given the oversold technical studies. We do however retain a bearish bias and would look for the 10-Day to continue to cap gains ahead of a renewed bout of weakness through 1.3530. A close back above the 10-Day SMA would however delay and open the door for additional corrective gains potentially towards 1.4000 before bearish resumption.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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