The EURUSD faded yesterday's early gains and closed below its open (blue arrow). After hawkish comments by ECB officials, bulls took the EURUSD to 1.0935 before losing control to the bears. Unfortunately, bears have continued to push the currency pair lower. The chart on the right shows its hourly time frame. Here the trend following EMAs have already crossed down, and the stochastic is threatening to follow (black ellipses). If the stochastic moves bearishly and holds below 20 (red rectangle), the downward momentum will pressure EURUSD's price. Given the overbought nature of US yields and the hawkish pockets in the ECB, caution is warranted.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.