20 Mar 2015
EUR/USD: Little has changed from a macro outlook - FXCharts
FXStreet (Bali) - Despite the major squeeze in EUR/USD, little has changed from a macro outlook, notes Jim Langlands, Founder at FXCharts.
Key Quotes
"From here it is going to be rather tricky as the market looks to replace its stopped-out, short Euro positions, but overall, despite yesterday’s moves little has changed from a macro outlook. While the pressures of interest rate divergence have eased a little it is still a question of when, not if, the Fed hikes, on top of which the outlook for Greece still highly uncertain."
"Technically, the picture for the Euro could arguably be more negative now than it was previously given that a large proportion of the markets Euro positions have now been eliminated. Below the session low of 1.0612 the near term support is seen at 1.0600, which is the 76.4% retrace of yesterday’s rally. Below there would return to 1.0550 (minor), 1.0500 and to the trend lows at 1.0461."
"Looking for levels to re-sell the Euro would seem to be the plan, although it could well be a choppy but rather quiet end to the week with a lot of players not wanting to be too involved after yesterday’s clean-out."
Key Quotes
"From here it is going to be rather tricky as the market looks to replace its stopped-out, short Euro positions, but overall, despite yesterday’s moves little has changed from a macro outlook. While the pressures of interest rate divergence have eased a little it is still a question of when, not if, the Fed hikes, on top of which the outlook for Greece still highly uncertain."
"Technically, the picture for the Euro could arguably be more negative now than it was previously given that a large proportion of the markets Euro positions have now been eliminated. Below the session low of 1.0612 the near term support is seen at 1.0600, which is the 76.4% retrace of yesterday’s rally. Below there would return to 1.0550 (minor), 1.0500 and to the trend lows at 1.0461."
"Looking for levels to re-sell the Euro would seem to be the plan, although it could well be a choppy but rather quiet end to the week with a lot of players not wanting to be too involved after yesterday’s clean-out."