EUR/USD: On A Down Trend
The EUR/USD pair is on a downtrend, and is supported from fundamental and technical point of view.
Fundamental view: Economic reports at the end of last week were in favor for the US dollar. On Thursday the 23th, US claims dropped to its lowest point since 1973, 255,000 unemployed people, 24,000 below analysts’ expectations.
On Friday the 24th, Manufacturing reports in France and Germany (both leading European countries) were negative, adding pressure on the EUR currency.
We will wait for tomorrow the 27th for the outcome of 2 major reports. German IFO business climate and core durable goods orders in the USA, both can change the balance between the EUR/USD.
Technical point of view:
In terms of direction, we are still consider down. With price below 20 MA and RSI levels below 50, we should continue looking for places to enter down.
Nevertheless, we see that 1.08 to 1.09 are levels in which the price tends to get buying pull backs. Now, we can say that because the price is low, it is natural to have buyers waiting in a low level. Or, we might see change in direction, if this week reports will be in favor for Europe, and Greek bailout deal will finally release some optimism steam, that will result in a strong correction up.