EUR/USD Still Under Pressure
The extension of ECB’s QE program pulled down the EUR/USD towards 1.0500 support. The ECB Quantitative Easing purchases per month were decreased from EU80Bn to EU60Bn and the market was looking for the cues of an eventual end of the QE, that didn’t happen.
Technically the EUR/USD is retracing up the trend line towards POC zone (61.8, EMA89, bearish order block) 1.0620-40. Retracement is supported by a regular bullish divergence at 1.0525. The POC zone could provide rejection and the EUR/USD should retest 1.0500 zone should 1.0680 holds. Traders should also pay attention to 1.0602 as it is an interim resistance. If the pair rejects from H4 or POC zone the targets are 1.0550 and 1.0525. 4h close or 1h momentum below 1.0525 target 1.0505 and 1.0455.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets.