EUR/USD- Fell from its resistance as Predicted ; What now?

The EUR/USD fell from its resistance on a  4 hour time frame. This resistance zone was given in our analysis on the 17th of December. The price did break the 100 day (shown in yellow) moving average and now trading near this average which is acting as a resistance. Moreover, the pair is also trading below the 50day (shown in green) moving average which confirms that the bulls are losing their control and the bias could be still to the downside.

Technical Analysis

European markets higher but volume is thin due to holiday season

 

Asian markets closed up on the first trading of the week by adding to their gains which were made last week. Although, it was a shaky start for the Chinese markets but the confidence among investors increased as the trading session gathered momentum. However, traders are still concerned that the spike in the interbank lending could initiate the cash crunch which we saw over the summer.  Speculation did fade for a brief moment after the Central bank injected $49.4 billion dollar but if this can really work, we do not know the answer of this yet. The banking stock was certainly under the pressure during the session while the overall market grind higher.

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