Lagarde’s surprisingly dovish presser from the U.S. session spooked EUR bulls and this anti-EUR sentiment carried over to the Asian session. The pair looks like it could retrace above the previous area of interest or around daily pivots R2 or 50% of Fibonacci retracement as because the short term moving average may suggest bullish trend but actually the long term indicate us it remains bearish still on the 1-hour time frame.
Another rejection from the previous area of interest or rejection from descending trend line or from any Fibonacci retracement levels as mention above could send the pair beyond the level 1.06999. A break above the 50% Fib, descending trendline, daily pivot levels any and 200 SMA could signal for a move back up to the 1.0790 but to be honest with the current situation of eurozone I feel less supportive for the euro currency after Lagarde told a news conference that risks to growth in the eurozone remained tilted to the downside and which overall tone as dovish for me including other traders I assume plus knowing that today german outlook only doing fine overall but leaving eurozone Manufacturing PMI (Jan) only fine not the service and Markit Composite bull traders got no much reason to boost the euro higher.
Another rejection from the previous area of interest or rejection from descending trend line or from any Fibonacci retracement levels as mention above could send the pair beyond the level 1.06999. A break above the 50% Fib, descending trendline, daily pivot levels any and 200 SMA could signal for a move back up to the 1.0790 but to be honest with the current situation of eurozone I feel less supportive for the euro currency after Lagarde told a news conference that risks to growth in the eurozone remained tilted to the downside and which overall tone as dovish for me including other traders I assume plus knowing that today german outlook only doing fine overall but leaving eurozone Manufacturing PMI (Jan) only fine not the service and Markit Composite bull traders got no much reason to boost the euro higher.
