EUR/USD (a 4-hour chart)
The Eurozone CPI for October matched the estimates while CPI monthly reading fell short-of expectations. The dollar slightly softened but remained onto fresh highs. The dollar continued getting support from market expectations for a December Fed rate-hike and possible improvements in economic growth.
The market sentiment was negative on Thursday. The EUR/USD remained in a descending channel, close to its lower boundary. The price was quite during the Asian trades around recent lows at 1.0700. The euro bounced from 1.0700 and moved higher in the European session. The upward momentum ran out of steam when approached the level 1.0750, as a result the common currency moved back. The moving averages maintained their bearish slope in the 1 hour chart. The euro broke the 50-EMA and tested the 100-EMA in the same chart. The resistance is seen at 1.0750, the support could be found at 1.0700.
The technical indicators maintained bearish momentum within negative territory. The MACD and RSI indicators continued consolidating within oversold levels.
A failure to hold above 1.0700 risks a slide to 1.0650. At the same time a further strengthening will not be possible until the pair breaks above 1.0750.