S&P 500 (US500) ended for the 3rd consecutive week with losses. The declines in the indices have been supporting the appreciation of the u.s dollar, which in turn has been putting pressure on the major currencies, particularly the EUR/USD.
EUR/USD has been trading lower over the past few weeks. However, the bearish momentum seems to have slowed down around the 61.8% Fibonacci levels.
From a technical point of view, it appears that we are facing a chart pattern - falling wedge - which the lower limit of the structure also supports a slight recovery of the short-term bullish momentum of the euro against u.s dollar.
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4 hours Time Frame Chart. Source: xStation 5
As long as the price remains above the current structure and above the Fibonacci levels, the upward movement could resume soon. On the other hand, a drop below this zone could prolong the losses towards the next Fibonacci level at 78.6%.
Henrique Tomé,
Analyst at XTB Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
