25 Aug 2015
EUR/USD bulls need to reclaim 1.1500 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD retraced most of yesterday's gains, falling down to 1.1396 before bouncing some 30 pips, to end the day above the 1.1400 mark.
Key Quotes:
"Chinese stocks fell another 7.63%, forcing the PBoC to make another intervention: the Central Bank cut its lending rate for fifth time since November, lowering also the banks' reserve ratio. The action that took place mid European session, boosted an already on-demand dollar that advanced, despite tepid US data."
"American new home sales rose by 0.507M beating previous month readings, but missing estimations of 0.520M, whilst the Markit Services PMI for Augusts printed 55.2 against 56.0 expected. A strong recovery in European and American indices helped stabilising the currency market, supporting the greenback."
"Technically, the downward move seems to have a short term bottom, as the technical indicators are recovering partially from near oversold levels, whilst the 100 SMA has advanced well above the 200 SMA, both below the current level, with the shortest offering a strong support around 1.1345."
"In the 4 hours chart the price is recovering after a brief decline below its 20 SMA, whilst the technical indicators have erased their overbought readings, and now turn flat, well above their mid-lines. Nevertheless, to confirm a stronger recovery, the pair needs to advance beyond 1.1500, the 61.8% retracement of Monday's fall."
Key Quotes:
"Chinese stocks fell another 7.63%, forcing the PBoC to make another intervention: the Central Bank cut its lending rate for fifth time since November, lowering also the banks' reserve ratio. The action that took place mid European session, boosted an already on-demand dollar that advanced, despite tepid US data."
"American new home sales rose by 0.507M beating previous month readings, but missing estimations of 0.520M, whilst the Markit Services PMI for Augusts printed 55.2 against 56.0 expected. A strong recovery in European and American indices helped stabilising the currency market, supporting the greenback."
"Technically, the downward move seems to have a short term bottom, as the technical indicators are recovering partially from near oversold levels, whilst the 100 SMA has advanced well above the 200 SMA, both below the current level, with the shortest offering a strong support around 1.1345."
"In the 4 hours chart the price is recovering after a brief decline below its 20 SMA, whilst the technical indicators have erased their overbought readings, and now turn flat, well above their mid-lines. Nevertheless, to confirm a stronger recovery, the pair needs to advance beyond 1.1500, the 61.8% retracement of Monday's fall."