Ñurrency movers for May 20, 2015

May 20, 2015

EURUSD, Daily

EURUSD has remained under pressure since trading sideways at support for yesterday afternoon. ECB pledges of accelerated or expanded QE this week have contributed to the correction we’ve seen this week from Friday’s three-month high at 1.1466. There also remains a lack of substantive progress between the Greek government and creditors in bailout negotiations, despite all too familiar optimistic sound-bites from various officials. The ECB considers widening of eligible Greek assets, but also raising the haircut on Greek collateral according to Greek newspaper Kathimerinini. This would maintain the lifeline for Greek banks, as the net effect should be broadly neutral. Time for a deal is running out, but if Tsipras hopes he can circumvent the Eurogroup and strike a deal at the margins of the upcoming summit in Riga, he is likely be mistaken. Creditors continue to insist on the agreed conditions, even though it is clear that they want to keep Greece in the Eurozone, as the impact of the first member exiting the Eurozone is uncertain.

After trading a bit too long sideways at support yesterday the lack of upside momentum turned into a downside move this morning. EURUSD has fallen below the supporting rising trendline and to a 38.2% Fibonacci level that also coincides with a daily pivot low from May 5th. Today’s low at the time of writing has been 1.1060, only 8 pips above the March 26th high and now the latest complete 4h candle is a hammer. Therefore it seems that market is placing some significance to the March 26th high as support. At the same time Stochastics are edging close to oversold levels. This suggests that the down move is getting overdone. However, at the same time the move below 1.1131 pivotal support created a resistance level that is relatively close to the current price. This combination of support and resistance levels could lead to price stalling at current levels before the direction is resolved. Nearest support and resistance levels are at 1.1052 and 1.1131. Additionally there is intraday resistance at 1.1158. If these are cleared the next significant daily resistance level is at 1.1324.

Currency Pairs, Grouped Performance (% Change)

This morning we’ve seen some USD and GBP strength coupled with EUR and AUD weakness but the moves have been relatively small. DXY has run into a resistance at levels that turned it lower in the beginning of May AUDUSD has been the weakest dollar pair while GBP has been able to resist the USD strength and is practically unchanged.

Main Macro Events Today

Publication source
HotForex information  HotForex reviews

December 9, 2016
Euro slips as ECB extends QE by 9-months
The single currency was weaker after the European Central Bank decided yesterday that it would continue with its bond purchases program. The ECB extended its QE plans from March 2017 to the end of the year...
December 9, 2016
The global stock market rally
The global stock market rally, which was underpinned by further ECB stimulus measures yesterday and a rise in oil prices, continued in Asia overnight, with most markets moving higher...
December 9, 2016
Markets throw caution to the wind
Markets have thrown caution to the wind when it comes to movements as of late as once again US equities set the scene with another stellar rise, though not as big as yesterdays...

FIBO Group Rating
Larson&Holz IT Ltd Rating
XTB Rating
OctaFX Rating
XM Rating
FBS Rating

OptionFair Rating
24option Rating
EZTrader Rating
365BinaryOption Rating
IQ Option Rating
OptionBit Rating