Eur/usd - page 516
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
EUR: Taper On Not, EUR Set To Remain Under Pressure
In its widely anticipated decision to delay the end of QE past March, the ECB managed to cause some near-term confusion in currency markets. Even though the size of monthly purchases in the extended April-December 2017 period is going to be only 60bn euros, as opposed to the current 80bn, according to Mario Draghi that doesn’t constitute a “tapering”. So after initially rallying, the euro then ending up retreating again.
Whether this is a taper or not, the fact remains that the ECB’s QE program hasn’t been able to boost inflation, and failure to do so going forward keeps alive the very real possibility that the scheme will be extended again in the future.
Unless inflation starts to pick up, expect the euro to remain under pressure.
Euro Downtrend Against Dollar Projected to Extend this Week but Fed Meet is Key Risk
We expect the Euro to Dollar conversion to continue trending lower but acknowledge the US Federal Reserve policy meeting mid-week as a potential disruptor.
EUR/USD is in a concerted short-term downtrend which looks likely to continue lower.
Our studies suggest a break below the 1.0503 December 5 lows would confirm an extension down to the next target at the 1.0460 March lows.
The recent break lower on the news that the ECB is extending its programme of money printing until the end of the 2017 caused a spike down in the exchange rate, which looks like the start of the next leg of the downtrend:
Commerzbank’s techncical strategist, Karen Jones, also sees a likelihood of more downside on the horizon after the rejection at 1.0875, which was a key turning point:
“EUR/USD briefly spiked up to 1.0875, this looks exhaustive price action and a slide back below the 20-day ma at 1.0665 has been seen, this should be enough to focus attention on 1.050 and 1.0467, the recent low and the March low.
“This remains a major break down point to parity.”
read more
On the last Friday’s session the EURUSD fell again but this time with a narrow range and closed near the low of the day, also managing to close below Thursday’s low, which suggests a strong bearish momentum.
The currency pair is trading below the 10, 50 and the 200-day moving averages that should act as dynamic resistances.
The key levels to watch are: a daily resistance at 1.0819 (resistance), a Fibonacci extension at 1.0666 (resistance), the 10-day moving average at 1.0650, a daily resistance at 1.0622, (support) and the all-time low at 1.0462.
The EUR/USD pair jumped to 1.0651 today, which is the highest level since last Thursday. The single currency was boosted by the OPEC matters as the US dollar suffered along with the deal to reduce the global oil glut. Anyway the downward slope remains intact as long as the pair is situated below 1.0850 area.
The new week strated positive for the single currencly and was seen elevated against the US dollar on Monday session. There is slight chance for the EUR/USD pair to bounce higher. The intraday support is seen at 1.513 and 1.0452. Resistance is located at 1.0873 and higehr at 1.0925.
Germany CPI November final mm +0.1% as expected
Germany CPI November final readin 12 Dec
Also out:
Nov Wholesale Price Index :
Yesterday the EURUSD rose with a wide range, while engulfing the Friday’s candle, and closed near the high of the day, in addition managed to close above Fridays high, which suggests a strong bullish momentum.
The currency pair continues to trade below the 10, 50 and the 200-day moving averages that should act as dynamic resistances.
The key levels to watch are: a daily resistance at 1.0819 (resistance), a Fibonacci extension at 1.0666 (resistance), the 10-day moving average at 1.0644 (resistance), a daily support at 1.0622, and the all-time low at 1.0462 (support).