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EUR/USD: dovish ECB and bearish bias - FXstreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the Central Banks' heads led the way for the EUR/USD pair this Thursday that anyway traded within its latest range.

Key Quotes:

"The common currency fell down to 1.0690 against its American counterpart in the European morning, following some comments from the ECB president, Mario Draghi, who pretty much guarantee an extension of QE next December, in his testimony on monetary policy, before the European Parliament. The greenback advanced across the board, until the US session opening, when plummeting stocks and a mute Yellen, who made no comments on economic policy, sent the pair to a fresh weekly high of 1.0808."

"The pair settled below the figure ahead of the close, showing little signs of having bottomed. In fact, the fundamental background that triggered the latest decline that is, the increasing imbalance between Central Banks, remains the same, which means that the risk is still towards the downside.

The 1 hour chart shows that the price has managed to advance above its 20 and 100 SMAs, both around 1.0740/50, but that the technical indicators have lost their upward strength after crossing their mid-lines towards the upside.

In the 4 hours chart, the price is still moving back and forth around a horizontal 20 SMA, while the technical indicators head higher above their mid-lines, mostly preventing the pair from falling in the short term, rather than signaling a continued advance."

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