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EUR/USD bounces off 2-year lows

FXStreet (Córdoba) - EUR/USD managed to recover some ground and is trading back above 1.2600 as the shared currency takes a breather after printing fresh 2-year lows.

EUR/USD fell sharply and printed its lowest level since September 2012 at 1.2570 before profit taking lifted the pair. At time of writing, EUR/USD is trading at 1.2623, 0.48% below its opening price.

Thursday the ECB will decide on monetary policy and investors will be looking for any sign of further stimulus and details of the asset buying program announced last month.

EUR/USD technical outlook

“The pair has reached extreme oversold readings in the hourly chart and bounced some, hovering around the 1.2600 figure early US session, still quite heavy according to technical readings, as per 20 SMA heading lower well above current price, momentum heading strongly south deep in negative territory, and RSI still at 23. In the 4 hours chart 20 SMA capped the upside earlier on the day maintaining a strong bearish slope, while indicators head strongly south in negative territory, giving no signs of a possible upward correction”, said Valeria Bednarik, chief analyst at FXStreet. “Former low at 1.2660 should now attract sellers if reached, while a break below mentioned low should see the pair extending its decline down to 1.2540/50 price zone”.

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