- The market has been trading inside a wide trading range for 5 weeks, the mid-term trend was then neutral.
- At the end of March, sellers have become powerful and numerous enough to take control of the market, leading prices to a bearish breakout of the lower bound of their range. Investors, pushed by hopes a dovish monetary switch in the Eurozone, have massively sold the single currency, leading prices to a new low around 1.4588. The DMI indicator confirms this lack of appetite for the Euro currency, displaying a high bearish pressure within a directional movement.
- This situation is clearly bearish for this pair. The fundamentals behind this price action isn't likely to fade away soon as bets of rate cuts in Europe keep on piling up everyday. The next major support area can be located around 1.4570 while the second one remains around 1.4514. Of course intermediate support levels can also be found around 1.4555 and 1.4537.
Pierre Veyret, Technical Analyst at ActivTrades
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