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EUR/USD records new 1-yr low

FXStreet (Bali) - EUR/USD continues offered in Asia, with selling interest still overwhelming bids lying below the 1.32 round number, resulting on a new year low printed in Asia at 1.3179.

Price action in EUR/USD remains a reflection of the current market views on diverging monetary policy expectations between the ECB (firmly dovish) and the Fed (faster rate hikes being speculated).

Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The bearish pressure remains in place, with the short term picture neutral as per the lack of definitions over the last 24 hours: the hourly chart shows price right below its 20 SMA and indicators barely turning lower around their midlines. In the 4 hours chart momentum turned south well into negative territory, while RSI holds steady in oversold levels as 20 SMA extended lower."

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