NEW YORK (Forex News Now) – As of around 12:00 P.M. GMT on Wednesday, the euro was extending its recent decline against the U.S. dollar, as it touched a 1-week low in European midday currency market trading.
This is what the analysts say about the heavily traded currency pair in the near-term:
FXstreet quotes Windsor Brokers as saying that while the Oct. 20 low of 1.3696 holds, scope remains for a “higher low ahead of fresh strength,” with regain of minimum 1.3990 necessary for EUR/USD resume gains for a retest of the 1.4050/80 zone, and a possible final push to 1.4156.
But the realtime forex news site quotes the broker as adding, “Loss of 1.3696, however, would complete a diamond top pattern and trigger fresh weakness towards 1.3636 first.”
Forexcyle, for its part, notes that the break below support at 1.3860 suggests a lengthier consolidation in the trading range between 1.3698 and 1.4152 is underway.
However, according to the site’s intraday analysis, “A breakdown below 1.3698 level will indicate that the uptrend from 1.2587 (Aug. 24 low) has completed at 1.4152 already, then the following downward move could bring price to 1.3400 area.”
Meanwhile, in a report aimed at technical analysis trading, Action Forex notes that intraday bias is on the downside for 1.3697 and a further to 38.2% retracement of 1.2587 to 1.4150 at 1.3553, to extend the consolidation from 1.4150.
The site adds, “On the upside, decisive break of 1.4150 will confirm resumption of recent rally and should target medium term trend line resistance at 1.4550 next.”