EUR/USD for February 20, 2017

The EUR/USD edge lower, after rebounding from support over the past two trading session.  Momentum was snapped following comments from the ECB’s Lane on quantitative easing. Target support is seen near the weekly lows at 1.0520. Resistance is seen near the February highs at 1.0829.  for the weekl the currency pair is slightly higher gaining approximately half a big figure. Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

Eurozone spreads and peripheral yields remain volatile and against that background it may be no surprise that ECB’s Lane argued for the bank to retain the option to cut rates further.  This should keep volatility in the currency markets higher as European elections commence.