30 Oct 2013
EUR/USD sits on fence ahead of FOMC, today’s US and EZ significant data
FXstreet.com (Athens) – The EUR/USD is trading mostly sidelines today ahead of FOMC, with the single currency being under pressure, despite the fact that an ultra dovish on behalf of Fed has already been priced in.
EUR/USD edges down slightly ahead of FOMC, German labor data, German CPI, US ADP
The EUR/USD grinds slightly lower today, but mostly trading sideways since the kick off of the Wellington trading session, just a little beyond the yesterday’s daily low. However, traders might find out of the blue the fact that while markets have already well priced in a dovish FOMC statement, the American dollar is strengthening against its major counter-part. Even Richard Fisher –one of the most hawkish Fed members - admitted that the timing is not right to reduce monetary stimulus, so a plausible investor question would be how the greenback is supported amidst an already dovish priced in result. Looking behind the curtains, we could attribute greenbacks’ strengthening to the fact that we probably witness position squaring ahead of FOMC, rather than any kind of movement in favor of the greenback. Finally, today we get a slew of data, US ADP private pay rolls, US CPI, as well as significant data pertaining to the power horse of Euro land, i.e. German labor data, CPI.
Technical Aspects on EUR/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the ”EUR/USD is pulling back from the 61.8% retracement of the move down from 2011 (at 1.3833). Directly above here lies the top of the channel at 1.3874 and this represents the last defense for the major resistance at 1.3958/1.4002 band, which represents the 50% retracement of the move down from 2008 and the 2008-2013 resistance line. We note the 13 count, the TD perfected set up on the daily and the 13 count on the weekly chart (we last saw this in 2008).”
EUR/USD edges down slightly ahead of FOMC, German labor data, German CPI, US ADP
The EUR/USD grinds slightly lower today, but mostly trading sideways since the kick off of the Wellington trading session, just a little beyond the yesterday’s daily low. However, traders might find out of the blue the fact that while markets have already well priced in a dovish FOMC statement, the American dollar is strengthening against its major counter-part. Even Richard Fisher –one of the most hawkish Fed members - admitted that the timing is not right to reduce monetary stimulus, so a plausible investor question would be how the greenback is supported amidst an already dovish priced in result. Looking behind the curtains, we could attribute greenbacks’ strengthening to the fact that we probably witness position squaring ahead of FOMC, rather than any kind of movement in favor of the greenback. Finally, today we get a slew of data, US ADP private pay rolls, US CPI, as well as significant data pertaining to the power horse of Euro land, i.e. German labor data, CPI.
Technical Aspects on EUR/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the ”EUR/USD is pulling back from the 61.8% retracement of the move down from 2011 (at 1.3833). Directly above here lies the top of the channel at 1.3874 and this represents the last defense for the major resistance at 1.3958/1.4002 band, which represents the 50% retracement of the move down from 2008 and the 2008-2013 resistance line. We note the 13 count, the TD perfected set up on the daily and the 13 count on the weekly chart (we last saw this in 2008).”