The EURUSD made new lows in trading in the first few hours of trading but did to any momentum selling. The price corrected higher but his now lower as Draghi begins his testimony.
The sellers remain in control (trading in the Red Zone). Draghi’s initial comments are more bearish (“ECB recovery is losing momentum:, “Unemployment is unacceptably high”,”Risks ….are clearly to the downside”).
Technical Analysis: EURUSD chart showing the sellers are remaining in control from a technical perspective.
The EURUSD has dipped a few pips lower but not racing anywhere so far.
From a technical perspective, the high over the last 6 hours of trading in remaining below the low from September 9th at 1.2858 (close RISK for sellers today).
The price of the EURUSD fell below this low last week on Wednesday (briefly), Thursday, and again on Friday. Today, the rebound off the low in the Asian session, took the price above that line, but London trading, has taken the pair back lower. We still are not seeing the momentum needed to keep the sellers 100% comfortable, but the buyers are not really enthusiastic either.
For the week, as long as the price remains below the 100 hour moving average (blue line), the sellers are in control. That MA is currently at the 1.2898 and moving lower.
