EUR/USD surges further beyond 1.1400

20 December, 2018

The post-FOMC USD bounce turned out to be short-lived and helped regain traction. The latest optimism over Italy’s budget compromise further underpinned the EUR. Technical buying above 55-day SMA is likely to fuel the ongoing positive momentum.

The EUR/USD pair finally broke out of its Asian session consolidation phase and surged back above the 1.1400 handle, moving within striking distance of 1-1/2 week tops set in the previous session.

With few hawkish surprises from the latest FOMC statement/economic projections, the overnight US Dollar rebound turned out to be short-lived and was seen as one of the key factors that helped the pair to regain positive traction for the fourth consecutive session. 

The Fed raised benchmark interest rates for the fourth time this year but lowered its rate hike forecast for 2019. The so-called 'dot-plots' now signal two hikes next year, instead of three in September, though failed to convince market participants amid concerns over the slowdown in global growth.

Meanwhile, the shared currency remained supported by Wednesday's news that Italy had struck a deal with the European Commission over its contested 2019 budget and further collaborated to the pair's strong intraday up-move of over 60-pips.

Even from a technical perspective, the pair now seems to have found acceptance above a key hurdle marked by 55-day SMA and hence, a follow-through up-move, led by some fresh technical selling amid absent influential economic releases, now looks a distinct possibility.


Source link   Presented by HYCM

Bears have broken the trend line

On Tuesday the 14th of May, trading on the euro closed down. The EURUSD pair dropped from 1.1243 to 1.1201. The 45th degree provided some...

EUR/USD looks to German CPI

The pair climbs to fresh weekly highs beyond 1.1200. EMU advanced Q1 GDP surprised to the upside. German flash inflation figures next of relevance...

USD bid hgher as new home sales rises

The USD traded higher on Tuesday, rising to a six-week high. The new home sales report showed a 4.5% increase on a month over month basis, beating...


EURUSD expect a test of 1.1230

With a thin market, the bulls managed to push through to 1.1262. A correction occurred within a relatively narrow price range. At the time of writing, the...

EURUSD: the Easter holidays continue

Most of the majors closed last week down against USD. The Swiss franc fell by 1.15%, the Kiwi dollar by 1.12%, the pound by 0.55%, the euro by 0.49%...

EURUSD: bulls have returned to 1.13

On Tuesday the 16th of April, trading on the euro closed down. The EURUSD pair was knocked off its perch of 1.1314 by Reuters, which reported...


EURUSD: bulls ready to test 1.13

On Thursday the 11th of April, trading on the EURUSD pair closed down, with the single currency dropping to 1.1250. To me, this seemed to be...

EURUSD: sideways motion expected

On Wednesday the 10th of April, trading on the euro closed up. Volatility was high on all currency pairs with the euro, especially during ECB President...

EURUSD stabilised at 1.12 ahead of ECB

On Tuesday the 9th of April, trading on the euro closed slightly down. On the back of Brexit rumours and the rising crosses, the EURUSD pair jumped...

  


Share it on:   or