EUR/USD: Recovery has no steam
The EUR/USD pair on Tuesday staged a goodish intraday bounce from multi-month lows and finally settled with modest daily gains, snapping six consecutive days of losing streak. Haresh Menghani from FXStreet, however, does not expect the gains to continue.
“Immediate resistance is now pegged near the 1.0940 horizontal zone and any subsequent positive move might fizzle out, rather capped near a strong horizontal support breakpoint, now turned resistance, around the 1.0980 region.”
“The 2019 swing lows – around the 1.0890-80 region – might continue to protect the immediate downside, which if broken might turn the pair vulnerable and pave the way for a further near-term depreciating move towards late April/early May 2017 lows, near the 1.0825-20 zone.”