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Euro Currency is still below the Key Moving Averages


The euro currency formed a lower low and a lower high last week. The EUR/USD currency exchange rate fell back from the 38.2 Fibonacci level near 1.1380. The bears seem to be fully in control of this Forex market with no bottom in site.

The economic calendar, for Monday, is not very busy. Forex and other financial market traders will be watching the Ukraine closely. Russia has amassed nearly 170,000 troops on the border and could invade within the next few weeks, or by the New Year.

On Tuesday, U.S. President Joe Biden will hold a video call with Russian President Vladimir Putin. The Russians are clear that the Ukraine should not be allowed into NATO. Biden has rejected this red line outright.

Sentix will publish their monthly consumer sentiment survey for the European Union. The Eurozone will also publish their monthly factory orders. The United Kingdom will release their monthly construction purchasing managers’ index (PMI). The United States is not publishing top tier economic numbers on Monday.

Daily Euro Currency Report (EUR/USD)

Looking at the above daily MT 4 price action chart, the euro currency is trading around the 23.6 percent Fibonacci level. Also helping the bears, the EUR/USD Forex pair is below the twenty, one hundred and two hundred (20, 100, 200) day simple moving averages.

The momentum indicator is signaling more bearish strength and the 14 day relative strength index (RSI) is near thirty (30). The euro currency has moved lower from the 20 day simple moving average.

With the relative strength index showing no real buying interest, the EUR/USD Forex market could challenge 1.1160 before bringing 1.1270 into focus.

On the upside, the EUR/USD currency exchange rate has immediate technical resistance lining up at 38.2 Fibonacci level near 1.1380. A daily close above 1.1380 opens the door for the key upside barrier that lines up at 1.1470.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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