6 Mar 2015
EUR/USD: No signs of recovery – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, notes that EUR/USD technicals fail to show any fresh signs of any recovery, and with the pair trading depressed, a move below 1.0991 could lead to a sharp selloff towards 1.0792.
Key Quotes
“The EUR/USD managed to sustain above 1.10 levels in the previous session after the European Central Bank (ECB) left key rates unchanged, while stressing the open ended nature of its QE program.”
“The ECB did revise its growth forecast higher post which the pair spiked to 1.1110, however bank’s readiness to extend QE post September 2016 eventually weighed over the pair.”
“Furthermore, the bank also stated readiness to buy bonds with negative yields up to the deposit rate (-0.2%). It also lowered its 2015 inflation forecast, although forecast for 2016 and 2017 was revised higher.”
“The pair currently trades at 1.1020 levels, with daily RSI oversold at 27.48.”
“No fresh signs of technical recovery are currently seen on hourly or 4-hour charts as well.”
“A break below 1.0991 (Aug. 2003 closing) could lead to a sharp sell-off as the next major support is seen directly at 1.0792.”
“On the other hand, the pair could rise to 1.1140 in case the US monthly non-farm payrolls report disappoints market expectations.”
“Moreover, a weak US data could see investors price-in the upward revision of the growth forecasts by the ECB.”
“At the moment, the uncertainty ahead of the NFP report caps gains in the EUR/USD pair. The Q4 Eurozone GDP number could trigger minor moves, although focus shall remain broadly on the US NFP numbers.”
Key Quotes
“The EUR/USD managed to sustain above 1.10 levels in the previous session after the European Central Bank (ECB) left key rates unchanged, while stressing the open ended nature of its QE program.”
“The ECB did revise its growth forecast higher post which the pair spiked to 1.1110, however bank’s readiness to extend QE post September 2016 eventually weighed over the pair.”
“Furthermore, the bank also stated readiness to buy bonds with negative yields up to the deposit rate (-0.2%). It also lowered its 2015 inflation forecast, although forecast for 2016 and 2017 was revised higher.”
“The pair currently trades at 1.1020 levels, with daily RSI oversold at 27.48.”
“No fresh signs of technical recovery are currently seen on hourly or 4-hour charts as well.”
“A break below 1.0991 (Aug. 2003 closing) could lead to a sharp sell-off as the next major support is seen directly at 1.0792.”
“On the other hand, the pair could rise to 1.1140 in case the US monthly non-farm payrolls report disappoints market expectations.”
“Moreover, a weak US data could see investors price-in the upward revision of the growth forecasts by the ECB.”
“At the moment, the uncertainty ahead of the NFP report caps gains in the EUR/USD pair. The Q4 Eurozone GDP number could trigger minor moves, although focus shall remain broadly on the US NFP numbers.”