Flash: EUR/USD: ruled by bulls despite the lack of momentum - FXStreet

FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet notes that the EUR/USD remains quite reluctant to accelerate higher and short-term indicators lack strength.

Key Quotes

"The EUR/USD managed to advance some, albeit still quite reluctant to accelerate higher, on the back of a better than expected inflation reading in the EU: yearly basis CPI reached 0.8%, above the 0.7% expected, diminishing partially fears of deflation in Europe. Still poor, the reading at least gives hopes for a local recovery, moreover after an also improved IFO Business Confidence reading in Germany".

"The EUR/USD reached 1.3770 before stalling and retracing, losing the early upward potential as per trading near its daily opening of 1.3732. The 4 hours chart presents a slightly positive tone albeit price above its 20 SMA and indicators heading north right above their midlines, thus lacking strength. Despite bulls are clearly dominating the pair, the momentum remains subdued. Price needs to accelerate beyond 1.3780, to confirm a new leg higher, looking then for a short term advance up to 1.3830/50 price zone".

"Below 1.3730, the pair may attempt a bearish run towards 1.3680 area, where buyers will likely surge, sending price again above the 1.3700 mark".