EUR/USD Technical Analysis: July 20, 2017
The EURUSD declined as the European government bonds moved higher while the yields retreated near their American counterparts.
The downturn of the European yields versus treasuries put pressure on the forward curve which further weighs on the euro-dollar pair.
The report of the European Central Bank for tomorrow has the potential to have some changes from June, however, there are news that the officials are planning for tapering options for a decision in the fall has demonstrated that the peripheral debt and equity markets in the Eurozone performed less well than expected.
The pair edged lower from Tuesday peaks and broke out to the renewed 13-month highs.
The support came in at 1.1450 mark which is close to the 10-day moving average. The prices are able to consolidate and generated bull flag formation which is a respite that stimulates higher.
The momentum moved on the positive side as the moving average convergence divergence (MACD) index established a crossover signal to buy. The spread causes this to happen as it crossed over the 9-day exponential moving average of the spread. Moreover, the histogram shifted to the positive from the negative zone indicating a buy signal