EURUSD bearish sentiment in the asset is intensifying – 28 January 2022
EURUSD bearish sentiment in the asset is intensifying
EURUSD bearish sentiment in the asset is intensifying. The European currency shows ambiguous dynamics of trading against the US dollar during today’s Asian session, consolidating near the level of 1.1150. The day before, EUR/USD showed a steady decline, as a result of which it updated record lows from June 2, 2020.
The reason for the strengthening of “bearish” sentiment yesterday was the strong data on the dynamics of US GDP for Q4 2021. The US economy expanded 6.9% in Q4 after expanding 2.3% in the prior period. Analysts had expected growth of only 5.5%. The published statistics correlate with the words of the Chair of the US Federal Reserve, Jerome Powell, who commented on the prospects for the regulator’s monetary policy on Wednesday. The official noted the achievements of the American economy and said that board members are considering a rate hike as early as March. Moreover, under certain circumstances, the regulator can adjust the rate by 50 basis points at once.
Today, investors will be focused on statistics on the dynamics of German GDP for Q4 2021. Also during the day, there will be a report on business sentiment in the euro area for January.
Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is expanding; however, it fails to catch the surge of the “bearish” sentiment at the moment. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the risks of oversold EUR in the ultra-short-term.
Resistance levels: 1.1185, 1.1220, 1.1255, 1.1300.
Support levels: 1.1130, 1.1100, 1.1054, 1.1000.