EUR to break out of the recent consolidation after ECB

22 October, 2015

Research Team at UOB, suggest that in view of ECB’s meeting later today, a break out the narrow consolidation range will not be surprising but the direction of the break would be more difficult to determine. 

Key Quotes

“We adopted a neutral stance in EUR last Friday and since then; this pair has been trading sideways within a range of 1.1304/1.1397.”

“With daily MACD heading lower and with internal momentum showing signs of weakness, the bias appears to be greater on the downside. However, 1.1300 is a major support and this level has to break before a sustained down-move in EUR can be expected in the coming days.”

“That said, the next support is not that far away at 1.1240 and being a cluster of supports, this is clearly a major level. The next significant support below 1.1240 is closer to 1.1085. Overall, a move to 1.1415/20 resistance will not be surprising but at this stage, 1.1460 appears to be strong enough to contain any EUR strength in the next couple of days.” 


Source link  
Dollar looking to recover from the weekly declines

Lack of any clear catalyst kept the markets drifting. The scheduled health-care vote which was due...

Investors turn to Yellen speech

The British pound settled after briefly slipping from the highs of 1.250 to post session lows at 1.2423 earlier...

U.S. dollar slips as investors scale back

The U.S. dollar index fell below the 100.00 handle yesterday as investors scaled back the Trump Trade...


USD continued to weaken yesterday

Price consolidated yesterday as directional catalysts have subsided in the wake of the ECB/ FOMC meetings. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50%...

Short covering rally continues

Short covering rally continues. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50% Fibonacci retracement from last year’s high. We also have the completion...

Dutch exit polls bodes well for EURUSD

The initial exit polls from various sources have clearly put the Dutch incumbent Prime Minster Mark Rutte's party in the lead against his radical opponent, Geert Wilders...


Fed and Dutch set the tone for a busy day

The FOMC's interest rate decision today will be closely watched as traders brace for a third rate hike in just under two years, since December 2015. The short term Fed funds rates are expected to rise to 0.75%...

U.S. dollar wavers, PPI data coming up

Trading was flat with the currencies seen giving back the gains made from Friday. The lack of any major events also contributed in part to the flat trading. Traders will be looking forward to the first part of a busy week starting tomorrow with the Fed's rate hike looming...

Draghi's speech stands out amid a quiet trading session

The single currency is seen extending the gains from Friday's rally even as the ECB president Mario Draghi is slated to speak later today...

  


Share: