Despite the two day winning streak, it is too early to call a short-term bottom in EUR/USD given that short-term moving averages – 5-DMA and 10-DMA are still sloping downwards.
Also take note of the fact that the bullish tone in the pair today ran out of steam near 10-DMA level of 1.0948.
Furthermore, we need to see at least two daily closes above 1.0931 (61.8% of May high – June low – Aug high) – 1.0937 (61.8% of 1.0517-1.1616).
Given the overall situation on the charts and in the wake of increased odds of Fed rate hike, it is very much likely that sellers could come back tomorrow and push the spot back to near 1.08 handle.
Also take note of the fact that the bullish tone in the pair today ran out of steam near 10-DMA level of 1.0948.
Furthermore, we need to see at least two daily closes above 1.0931 (61.8% of May high – June low – Aug high) – 1.0937 (61.8% of 1.0517-1.1616).
Given the overall situation on the charts and in the wake of increased odds of Fed rate hike, it is very much likely that sellers could come back tomorrow and push the spot back to near 1.08 handle.
