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EUR/USD in consolidative mode - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik remarks that EUR/USD is trading in a new lower range on Wednesday, close to the 1.2840/50 comfort zone.

Key quotes

"Yesterday rally was short lived and stalled at 1.2900, a daily descendant trend line coming from August 15th high of 1.3411. And while many called for the beginning of a recovery rally, the fact is that there are no technical readings supporting such call."

"The macroeconomic situation in the EZ has show no signs of picking up, with mixed PMI readings yesterday, and another discouraging survey earlier today: German IFO showed confidence dropped for fifth month in a row."

"Indeed, the pair has been in a quite steady decline over these last 3 months, so risk of a corrective upward movement increased."

"Yet at least some follow through above the line is required to begin considering so."

"I would say that it will take minimum daily close above 1.2950 to consider a bottom and correction."

"In the meantime, the 4 hours chart shows price measly 20 pips from its year low, and with technical readings maintaining a clear bearish tone, with price below its 20 SMA and indicators turning south around their midlines."

"Short term, a break below 1.2810 is required to confirm a new leg lower, with intraday supports/targets at 1.2770 and 1.2740."

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