Fiber was mostly flat after ECB’s announcement yesterday. 1.277 remain a strong support/resistance while a new interim resistance can be seen at 1.2755 level. A break above may bring trading range of 1.274 – 1.277 back into focus.
No new development on the daily chart, with price still straddling along the significant levle of 1.250 which acts as final support for the bulls. We could potentially see a Doji today should Asian trade continues to remain flat which is a neutral signal before any bullish/bearish confirmation becomes available. However, stochastic indicator is showing “Oversold”, and if we disregard price action before 23rd July, one would say that EUR/USD is in an uptrend, with current decline simply being a temporary pullback. If that interpretation is correct, and should 1.275 stay as support, this make the case for a bullish reversal even stronger. Nonetheless, traders may be wise to take note that should PA before 23rd July is taken into consideration, it becomes hard to deny that a strong downtrend pressure is still ongoing.
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