19 Jan 2015
EUR/USD bears all over the ECB this week
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the The EUR/USD pair opens the week slightly lower, trading however 100 pips above the fresh 11-year low of 1.1458 posted last Friday.
Key Quotes:
"Markets had been quite choppy ever since SNB decision, with brokers’ insolvency and financial woes being the main theme of the day. But that particular crisis, seems to have been contained right in time. US CPI was for the most ignored, although numbers missed expectations, which means the FED may have room to begin with rate hikes until the second half of this year".
"In the meantime, the market is mostly convinced ECBs’ sovereign QE its coming this week, and majors may do little ahead of the Central Bank meeting on Thursday. The EUR/USD pair trades above the 1.1500 level, with its latest recovery having been contained by a bearish 20 SMA in the hourly chart, whilst indicators corrected oversold readings only to turn back south, supporting further declines".
"In the 4 hours chart, indicators had lost their downward potential in extreme oversold levels, without suggesting yet a possible upward corrective movement. The 1.1530 level stands as immediate support, with a break below it pointing to a retest of the mentioned daily low, whilst to the upside, selling interest will likely surge on approaches to the 1.1600 figure".
Key Quotes:
"Markets had been quite choppy ever since SNB decision, with brokers’ insolvency and financial woes being the main theme of the day. But that particular crisis, seems to have been contained right in time. US CPI was for the most ignored, although numbers missed expectations, which means the FED may have room to begin with rate hikes until the second half of this year".
"In the meantime, the market is mostly convinced ECBs’ sovereign QE its coming this week, and majors may do little ahead of the Central Bank meeting on Thursday. The EUR/USD pair trades above the 1.1500 level, with its latest recovery having been contained by a bearish 20 SMA in the hourly chart, whilst indicators corrected oversold readings only to turn back south, supporting further declines".
"In the 4 hours chart, indicators had lost their downward potential in extreme oversold levels, without suggesting yet a possible upward corrective movement. The 1.1530 level stands as immediate support, with a break below it pointing to a retest of the mentioned daily low, whilst to the upside, selling interest will likely surge on approaches to the 1.1600 figure".