Forex Marketz Daily Forex News – Fully Markets Update
The euro currency is not sitting pretty against the U.S. dollar. The benchmark EUR/USD currency exchange rate lost ground for the third week in a row and currently trading below all three key daily simple moving averages (SMA). This includes the twenty one hundred and two hundred (20, 100, 200) smile moving averages.
The euro currency is well below the 61.8 percent Fibonacci average and challenging the 23.6 percent Fibonacci average. In short, this was the biggest weekly decline for the EUR/USD Forex market this year. The dollar was boosted by hawkish commentary from the Federal Reserve.
Last week, the U.S. central bank made no changes with their monetary policy but shocked the financial markets by signaling two rate hikes in 2023. They also said they were openly discussing tapering.
Today, European Central Bank President Christine Lagarde will speak to the press. The U.S. Chicago Federal Reserve branch will release their monthly national activity index.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD daily MT 4 price action chart, the euro currency is trading below a mildly bullish 20 day simple moving average. This Forex market is also trading well below flat 100 and 200 simple moving averages. The technical indicators have also turned sharply lower and into negative territory.
The bears seem to be in control as a new week starts. Especially while below the key simple moving averages. Traders should note, that the 14 day relative strength index (RSI) is near oversold. As is the 14 day MACD histogram.
There is technical support in play at 1.1840. The next downside barrier lines up a 1.7770 with the key layer of technical support then coming into play at 1.17.
On the upside, a daily close above the 50 percent Fibonacci level at 1.1985 opens the door to challenge a congestion area in play at 1.2060 to 1.2070.
