The Euro slid against all major currencies during last week’s trading session, looking to re approach four-month lows since the European Central Bank cut rates to record lows earlier this month, in order to combat the threat of persistently low inflation in the euro area.
Weekly bias in the pair remains slightly on the downside as 21 and 55 EMA’s, MACD, RSI and Stochastic oscillators on the daily time-frame signals more supply could be seen, but we need a clear break of 1.35018 supports to resume the current bearish trend in the pair. However we need a strong fundamentals to facilitate momentum as investors would be taking a closer look on the result of the FOMC economic projection scheduled to be released later on Wednesday.
Also, the Commodity Futures Trading Commission released its weekly Commitments of Traders report for the week ending June 10 on Friday, which showed that investors are more bearish on the Euro. However a break of 1.36751 resistance (June 6 high) would signal a bottom has been made at 1.35018 and a reversal is about to emanate.