EUR/USD: news from the battlefield
This week the single currency extended the downside. Bullish recovery was capped at $1.3150 on Tuesday, opening the way to the levels below $1.3000. On Friday EUR/USD recovered to the $1.3070/80 area from a four-week low around $1.2985 hit on Wednesday. The psychological $1.3000 area keeps offering support for the euro.
Given the H4 MACD divergence and the oversold market conditions, we concede the recovery to extend to $1.3100 (50% Fibo from the May-June rally, 23.6% from the recent decline). However, the medium term picture remains bearish: break through the $1.3000 barrier would open the way to our target at $1.2850.
Chart. H4 EUR/USD