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EUR/USD is down for the second session in a row, coming under further downside pressure after recent tops well beyond 1.19 the figure. Next stop on the downside is at 1.1700, as FXStreet’s Pablo Piovano notes.

Key quotes

“The dollar keeps recovering ground lost on the back of US-China effervescence while the recent negative assessment on the current economic conditions by the Fed in its minutes also added to the risk aversion mood. Later in the session, investors are expected to stay vigilant on the weekly report on the labour market and the Philly Fed index.”

“The technical view of the ongoing correction follows recent overbought levels and is reinforced by the bearish divergence in the daily RSI (the indicator never confirmed the yearly high).” 

“The 1.1700/1.1690 band is expected to offer solid contention in case sellers regain some (temporary) control. On another direction, the continuation of the bull run should see the psychological 1.20 neighbourhood re-tested, most likely in the short-term horizon.”