EURUSD - Whack-A-Mole - Dow Jones Newswires 19 March 2015

I like this comment from Dow Jones Newswires 2 days ago -

0641 GMT [Dow Jones] Despite the dollar's steep selloff triggered by the U.S. Federal Reserve's dovish stance revealed Wednesday, which boosted the euro by proxy, EUR/USD seems unable to hold up. The pair managed to rally to the 20-day Bollinger mid line--a key chart barrier that in mid-December signalled a prolonged EUR/USD decline--but then was promptly hammered back down. The euro now trades at 1.0776 from its overnight two-week peak of 1.0991. If it tries to rally again, the 20-day Bollinger mid line resistance which now caps at 1.0953 is a level at which chart-motivated traders might try to short the euro. While the timing of the Fed's first interest rate hike may have been pushed back, the fundamental argument for a weaker euro versus the greenback is unchanged. The European Central Bank is on an monetary-easing path, while the Fed is taking a step closer to entering a rate-hiking cycle. EUR/USD is now 1.0776 from its Wednesday close of 1.0865. (ewen.chew@wsj.com)

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(END) Dow Jones Newswires

March 19, 2015 02:41 ET (06:41 GMT)