27 Jul 2015
EUR/USD: Downside limited above 1.0950 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted and explained that the American dollar closed the day mixed last week, with the EUR among the few posting gains against the greenback.
Key Quotes:
"The EUR/USD pair managed to advance on Friday, after US New Home sales slipped to the lowest level of this 2015, falling 6.8% to a 482K annualised pace."
"The fundamental picture however, was far from favoring EUR's gains, as local PMI figures missed expectations, with France´s private sector output growth easing to a three-month low in July. In the US however, the manufacturing sector improved in July with the local PMI up to 53.8 against previous 53.6, an almost 2-year low."
"The upcoming week will have a pretty busy calendar with all eyes on the FOMC monetary economic policy meeting, supposedly the latest before the Central Bank begins its tightening policy. Also, investors will be watching Greece, as bailout talks are expected to begin sometime these days."
"The EUR/USD pair is developing within a daily descendant channel coming from June high at 1.1435 with the roof currently around 1.1050/80 for the upcoming days, which means that unless the pair advances beyond these levels, the upward movements are mostly seen as corrective. Daily basis, the bearish potential is intact as the pair remains below its 20 SMA, whilst the technical indicators are resuming the downside after failing around their mid-lines."
"In the 4 hours chart, however, the price is holding above a bullish 20 SMA around 1.0950, whilst the Momentum indicator heads higher above the 100 level, all of which should keep the downside limited in the short term. At this point, the pair needs to accelerate below the support at 1.0910 to confirm a new leg lower towards the 1.0860 region."
Key Quotes:
"The EUR/USD pair managed to advance on Friday, after US New Home sales slipped to the lowest level of this 2015, falling 6.8% to a 482K annualised pace."
"The fundamental picture however, was far from favoring EUR's gains, as local PMI figures missed expectations, with France´s private sector output growth easing to a three-month low in July. In the US however, the manufacturing sector improved in July with the local PMI up to 53.8 against previous 53.6, an almost 2-year low."
"The upcoming week will have a pretty busy calendar with all eyes on the FOMC monetary economic policy meeting, supposedly the latest before the Central Bank begins its tightening policy. Also, investors will be watching Greece, as bailout talks are expected to begin sometime these days."
"The EUR/USD pair is developing within a daily descendant channel coming from June high at 1.1435 with the roof currently around 1.1050/80 for the upcoming days, which means that unless the pair advances beyond these levels, the upward movements are mostly seen as corrective. Daily basis, the bearish potential is intact as the pair remains below its 20 SMA, whilst the technical indicators are resuming the downside after failing around their mid-lines."
"In the 4 hours chart, however, the price is holding above a bullish 20 SMA around 1.0950, whilst the Momentum indicator heads higher above the 100 level, all of which should keep the downside limited in the short term. At this point, the pair needs to accelerate below the support at 1.0910 to confirm a new leg lower towards the 1.0860 region."