27 Jul 2015
EUR posting highs despite US data - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD regained the 1.1100 figure this Monday, posting a daily high in the American afternoon of 1.1128.
Key Quotes:
"The dollar came under pressure at the beginning of the European session, as better-than-expected local data gave the EUR a boost. German business confidence improved more than expected in July, due to the easing concerns of a Grexit after the country reached an agreement with its European counterparts. Also, the EU money supply rose, to 11.8% in Jun from 11.2% in May. The figure that includes currency in circulation and overnight deposits, is a clear result of the ongoing QE, and points for higher inflation levels in the region. A softened greenback was unable to recover ground against its European rival, despite US Durable Goods Orders rose above expected in June, up 3.4%. The main supporter of EUR however, was the CHF as the EUR/CHF pair reached its highest in over 4 months on suspected SNB intervention."
"Technically the pair has broken above the roof of the daily descendant channel coming from 1.1435 by a handful of pips, opening doors for additional advances should the price accelerate again beyond the mentioned high. The 1 hour chart shows that the 20 SMA has advanced further below the current price, whilst the technical indicators are retreating from extreme oversold levels."
"In the 4 hours chart, the technical indicators have lost their upward strength, but remain near overbought readings, far from signaling a downward move. At this point, only a break below 1.1050 will favour additional declines, back towards the 1.0960 region."
Key Quotes:
"The dollar came under pressure at the beginning of the European session, as better-than-expected local data gave the EUR a boost. German business confidence improved more than expected in July, due to the easing concerns of a Grexit after the country reached an agreement with its European counterparts. Also, the EU money supply rose, to 11.8% in Jun from 11.2% in May. The figure that includes currency in circulation and overnight deposits, is a clear result of the ongoing QE, and points for higher inflation levels in the region. A softened greenback was unable to recover ground against its European rival, despite US Durable Goods Orders rose above expected in June, up 3.4%. The main supporter of EUR however, was the CHF as the EUR/CHF pair reached its highest in over 4 months on suspected SNB intervention."
"Technically the pair has broken above the roof of the daily descendant channel coming from 1.1435 by a handful of pips, opening doors for additional advances should the price accelerate again beyond the mentioned high. The 1 hour chart shows that the 20 SMA has advanced further below the current price, whilst the technical indicators are retreating from extreme oversold levels."
"In the 4 hours chart, the technical indicators have lost their upward strength, but remain near overbought readings, far from signaling a downward move. At this point, only a break below 1.1050 will favour additional declines, back towards the 1.0960 region."