Eur/usd - page 518

 

Following the Fed’s decision the EUR/USD pair tumbled and marked the lowest level since 2003 during yesterday’s session. The pair bottomed at 1.0366 and failed to recover to 1.0500 level. Current market price is 1.0389.  A weekly close below the 1.0400 are will set next bears target at 1.0200.

 
EUR/USD reached a multi year low yesterday going to 1.0366. The pair broke the support level at 1.04 and stayed for a while before the bullish camp took the chance to buy the dip. EUR/USD is now trading at 1.0444.
 

Yesterday the EURUSD fell with a wide range again and closed near the low of the day, in addition managed to close below previous day low, which suggests a strong bearish 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 Fibonacci extension at 1.0666 (resistance), a daily resistance at 1.0622, the 10-day moving average at 1.0616 (resistance), a daily resistance at 1.0462 and the new multiyear low at 1.0366 (support).

 

Eurozone trade balance Oct SA EUR +19.7bln vs +24.7bln exp


Eurozone October trade balance report 16 Dec

  • € +24.4bln prev revised sown from +24.9bln
  • NSA €+20.1bln vs +29.0bln exp vs +26.5bln prev

Weaker data but we need to see figures since the euro's depreciation to get a more relevant picture

 
The euro extended its losses at the end of the week, despite a sharp rise in the manufacturing index of Germany. The single currency fell to a 14 year low against the US dollar. Recent data from the euro zone were mixed. EUR/USD closed the week at 1.0449, moving closer to parity.
 
Key levels to watch for:
Support: 1.0400; 1.0345;
Resistance: 1.0540; 1.0639.
 
EUR/USD is trading somehow lower in the early opening hours of the week. The pair is now 1.0459 up from 1.0366. Main trend remains bearish as the pair broke the support level at 1.04. The break suggest that a move down is likely which hints to a probable parity in 2017.
 

On the last Friday’s session the EURUSD rose with a narrow range and closed near the high of the day, although the currency pair closed within Thursday’s range, which suggests  being slightly on the bullish side of neutral.

 

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 Fibonacci extension at 1.0666 (resistance), a daily resistance at 1.0622, the 10-day moving average at 1.0586 (resistance), a daily resistance at 1.0462 and the new multiyear low at 1.0366 (support).
 

Annual Increase in Eurozone Labour Costs Strengthens To 1.5% in Q3


In the third quarter of 2016, the annual growth in Eurozone labour costs increased to 1.5% from 1.0% for the second quarter. This was also a slight increase from the 1.3% recorded in the second quarter of 2015.

Wages and salaries rose 1.6% over the year from 0.9% in the second quarter, although this was unchanged from the previous year.

The increase in non-salary costs, however, slowed to 1.2% from 1.5% previously, although this is an erratic series and the third-quarter 2015 reading was held to just 0.2%.

Hourly wage costs increased 1.7% in the industrial sector and 2.0% in the construction sector, but the increase in services was held to 1.2%.

The higher rate of increase in labour costs will come as a relief to the ECB, especially as recent weakness in the data had been a major discussion point at the most recent Council meeting. A stronger pace in labour cost increases will be a crucial and necessary component in boosting overall inflation rates over the medium term and the data will offer some optimism over an improving trend.

The annual increase is, however, still below the 2.0% level, which will be needed to secure a sustained increase in inflation towards the ECB target. There will also still be some concerns surrounding weak wage increases in the services sector.


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EUR/USD is trading with little to no change in today's opening hours. The pair is now 1.0404, down from today's high of 1.0479. If we break below 1.04 again then bears might have the upper hand and we could see parity in the near future. First support is seen at last low at 1.0366.