6 Jan 2015
EUR/USD: Bear trend may take pause ahead of key events - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, ahead of key events in the US calendar this week, investors will likely await to extend the dominant bearish trend in the EUR/USD.
Key Quotes
"Markets were all about sentiment on Monday, with European turmoil and slumping oil leading the way. As the week kicked in, news coming from Germany saying that local authorities believe Europe can cope with Greece exit, triggered an EUR selloff that ended up favoring the greenback against all of its major rivals."
"As the day went by, German inflation readings hitting its lowest in near 5 years and oil prices falling sub $50.00 also for the first time in several years, did the rest: stocks were strongly down across the world, with European indexes losing average above 2.0%, and the US DJIA posting a 300 points intraday slide. Dollar rally stalled with indexes bearish momentum, but movements against the leading currency remained shallow."
"Technically, the 1 hour chart shows the price is unable to overcome a bearish 20 SMA currently a few pips above the current level, whilst indicators continue to correct higher still below their midlines. In the 4 hours chart indicators remain in oversold territory, whilst 20 SMA accelerated south but remains well above the current price, at 1.2045. During the upcoming days, the calendar will be filled with fundamental releases coming from the US and investors will likely await for it before making any major decision in regards of whether extending the dominant trend, or take some profits out of this latest EUR slump."
Key Quotes
"Markets were all about sentiment on Monday, with European turmoil and slumping oil leading the way. As the week kicked in, news coming from Germany saying that local authorities believe Europe can cope with Greece exit, triggered an EUR selloff that ended up favoring the greenback against all of its major rivals."
"As the day went by, German inflation readings hitting its lowest in near 5 years and oil prices falling sub $50.00 also for the first time in several years, did the rest: stocks were strongly down across the world, with European indexes losing average above 2.0%, and the US DJIA posting a 300 points intraday slide. Dollar rally stalled with indexes bearish momentum, but movements against the leading currency remained shallow."
"Technically, the 1 hour chart shows the price is unable to overcome a bearish 20 SMA currently a few pips above the current level, whilst indicators continue to correct higher still below their midlines. In the 4 hours chart indicators remain in oversold territory, whilst 20 SMA accelerated south but remains well above the current price, at 1.2045. During the upcoming days, the calendar will be filled with fundamental releases coming from the US and investors will likely await for it before making any major decision in regards of whether extending the dominant trend, or take some profits out of this latest EUR slump."