Pressure to Down Again, EURO

EUR/USD 1-hour chart, source: forexfactory.com

The major currency Euro falls against US Dollar. EUR/USD makes the typical turn-down pattern, double-tops pattern in 1-hour chart and it seems to keep its decline for a while.

In 4-hour chart, the price shows the adjustment after its rising. It has broken through the downward trend line already, it needs to watch whether the line acts the support line or not. But the feature of the Euro currency has shown that it doesn't fall rapidly and surge with rocket velocity, and there is the more possibility of falling under the downward trend line not overcoming.

Due to this adjustment in the four-hour chart, the resistance line was built at the price of 1.12 band. It seems there are some tries of break through the resistance line of 1.12. Once the line is broken through, the price band 1.12 may be a support line but the recent economic circumstance makes the price band the strong top, I guess.


Besides the technical analysis, we need to watch the news of ECB, European Central Bank's decision to freeze its Minimum Bid Rate at 1145(GMT), Thursday. ECB keeps its benchmark rate, zero percent to stimulate the Euro zone economy and it didn't destroy the market's expectation of freezing the rate. Therefore the currency pair EUR/USD rolled in a flash but it built the downward patter in one-hour chart. Though the event of the benchmark rate by the central bank is the most powerful affect to the its currency, but the fact of this event failed the impact makes the guess of bank's weaken influence on the market.

Meanwhile EUR/USD pair has checked its trough at 1.11. Though U.S. Fed raises Federal Fund Rate, it seems not to fall under price 1.11 except the temporary collapse.

In mid-term the price moves up and down between 1.11 and 1.12, I think.

EUR/USD 4-hour chart, source: forexfactory.com