1 May 2015
EUR/USD sitting pretty below key breakout level
FXStreet (Guatemala) - EUR/USD is currently trading at 1.1215 with a high of 1.1291 and a low of 1.1174.
EUR/USD is re-establishing the 1.12 handle as we approach the closing bell for the week. It has been a volatile time with a shift in themes taking place and sentiment turning across various sectors of the markets. In particular, the EZ has been dominant of late, with Greece and ECB chatter in respect to their QE programme and changes in outlooks for the deflationary environment underpinning a minor correction and short squeeze on the euro and euro crosses this week.
Camilla Sutton, chief currency strategist explained that inflation expectations are rising in the major economies in fact, "5yr5yr forwards are well off their lows, commodities are higher and most measures of inflation have at least stabilized. Even the IMF sees a materially decreased risk of deflation globally."
Technically, however, it was noted by Kare jones, chief analyst at Commerzbank that various Elliott wave counts are suggesting that this is the end of the correction. However, she added relative technical evaluations around that theory noting that a break above 1.1264 would allow for a deeper retracement to the key resistance of the 1.1513/34 February high while explaining that a drop below the 1.0923 55 day ma is needed to focus attention on the downside.
EUR/USD is re-establishing the 1.12 handle as we approach the closing bell for the week. It has been a volatile time with a shift in themes taking place and sentiment turning across various sectors of the markets. In particular, the EZ has been dominant of late, with Greece and ECB chatter in respect to their QE programme and changes in outlooks for the deflationary environment underpinning a minor correction and short squeeze on the euro and euro crosses this week.
Camilla Sutton, chief currency strategist explained that inflation expectations are rising in the major economies in fact, "5yr5yr forwards are well off their lows, commodities are higher and most measures of inflation have at least stabilized. Even the IMF sees a materially decreased risk of deflation globally."
Technically, however, it was noted by Kare jones, chief analyst at Commerzbank that various Elliott wave counts are suggesting that this is the end of the correction. However, she added relative technical evaluations around that theory noting that a break above 1.1264 would allow for a deeper retracement to the key resistance of the 1.1513/34 February high while explaining that a drop below the 1.0923 55 day ma is needed to focus attention on the downside.