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EUR/USD Breaks the 1.1000 Resistance Again

The EUR/USD pair broke below the 1.1000 and remains clearly bearish, ever since the imbalance between both Central Banks became more clear after their respective October meetings, and this latest break below 1.1000 support a continued decline ahead, albeit limited, as investors will be waiting for Friday’s US NFP release to define whether they can resume EUR selling.

In the short term, the 1 hour chart shows that the price remains well below a strongly bearish 20 SMA that is crossing below the 100 SMA, whist the technical indicators are bouncing from oversold levels, rather reflecting the latest recovery than suggesting bullish strength.

In the 4 hours chart, the Momentum indicator presents a bearish slope below their mid-lines, whilst the RSI hovers in negative territory and the price stands below its 20 SMA, all of which supports further declines.

Meanwhile the EUR and the JPY shed ground alongside with gold, whilst oil prices soared to a fresh 3-week high in quite a volatile day across the financial markets.

The dollar traded generally higher during the European session, gaining momentum after the release of the ISM New York Index that resulted at 65.8 in October, from a previous 44.5, but retreated with mixed results as the second bout of US data disappointed, with Factory Orders down for a second straight month in September, down by 1.0% after a downwardly revised 2.1% drop in August, whilst Consumer Confidence decline, as the IBD/TIPP Economic Optimism Index declined 3.8% in November, posting a reading of 45.5 vs. 47.3 in October.

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