Forex: EUR/USD bounces on NK talks

FXstreet.com (Barcelona) - EUR/USD is currently picking up some steam at fresh session highs 1.3046 on the back of the news that North Korea is wanting to come to the negotiating table, which has lifted a bit risk appetite in the region. Still local share markets fail to see any green, and EUR/USD is flat for last 2 trading days, retracing from yesterday's fresh 2-month highs at the 1.3200 handle, and off recent session lows at 1.3020.

As Valeria Bednarik, Chief Analyst at Fxstreet.com points out: “the hourly chart shows 20 SMA gaining a strong bearish slope well above current price, while indicators barely corrected extreme oversold readings,” the analyst says, adding: “In the 4 hours chart, indicators tuned bearish after the 200 pips slide, although lost momentum and turned now flat in negative territory. Whether current movement is the kick start of a bearish run, will be confirmed if price breaks below 1.2970, 23.6% retracement of the 1.3710/1.2744 fall, opening doors then for a run towards 1.2880 price zone,” she suggests.

Valeria finds support levels at: 1.3010, 1.2970 and 1.2925, while resistance levels at: 1.3060, 1.3100 and 1.3140.