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EUR/USD: Selling to accelerate below 1.2580 - FXStreet

FXStreet (Bali) - In view of Valeria Bednarik, Chief Analyst at FXStreet, renewed selling interest below 1.2580 should see EUR/USD resuming the downside.

Key Quotes

"Dollar closes Thursday mixed, in another quite active journey for investors: early US session, local GDP data quick started a dollar rally with a strong 3.5% headline. But majors quickly changed direction amid some worrisome subcomponents: government spending climbed at 4.6% the most since mid 2009, while the trade gap narrowed just a bit, from $460.4 billion to $409.9 billion, as imports dropped reflecting less consumption amid global slowdown."

"On Friday, the EZ will release its CPI the last strong reading of the month: EUR can find some support if inflation ticks higher, and attempt to extend current upward correction towards 1.2680."

"The EUR/USD printed a low of 1.2546 before recovering up to 1.2631, the 38.2% retracement of these two days bearish run. Retracing from the level, the 1 hour chart shows price hovering around its 20 SMA, while indicators erased all of their extreme oversold readings, but failed to overcome their midlines, keeping the risk to the downside."

"In the 4 hours chart 20 SMA also presents a bearish slope, converging with the 61.8% retracement of the same bearish run around 1.2680, while indicators remain well below their midlines. Renewed selling interest below 1.2580 should see the pair resuming the downside, eyeing a probable retest of the 1.2501 year low."

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