ECB pours cold water on Euro

18 August, 2017

The Euro has been swinging heavily over the last few days as the markets continue to go through some unpleasant motions. This has been brought on by some schizophrenic USD movements as of late, but also by the EU itself, which had its monthly ECB minutes released today. Overall, it was mostly positive for the Euro-zone with policy makers agreeing that it seemed that the Euro-zone was making progress returning to economic stability - despite the Brexit debacle across the channel. In addition to this though policy makers were concerned about the EURUSD which had obviously got stronger on better fundamentals, but felt it might be overstretched at present compared to the economic data at hand. The market was of course quick to react to such statements, and the EURUSD had a sharp drop, which was followed up by strong US economic data around the labour rates later in the afternoon.

The question remains then where should the EURUSD be placed at present on the charts. Right now we've been seeing large wicks appearing on the charts that are symptoms of the bears taking a very solid swipe. However, so far, traders have managed to keep the price above support at 1.1719, though there is a serious question around how much more pressure it can take. The 20 day moving average has also jumped up the charts and was acting as dynamic resistance today and is starting to turn lower, it could be the case we see further downward pressure leading into tomorrow. In the event the bears do take control and head lower then support at 1.1621 is likely to be the main target for traders. If the bulls can however take control and force it upwards then I would expect to see resistance retested at 1.1800 and finally another crack at resistance at 1.1915. However, despite this all be careful of the current state as the EURUSD has been struggling under all the pressure at present.

The Australian economy was boosted overnight by labour market statistics being released showcasing the economy is booming. The employment sector expanded by 27.9K (20k exp), while the participation rate lifted to 65.1% (65.0 prev). These are good figures from the Australian economy which has been struggling since the commodities sector took after the global financial crisis. It does however boost the chance going forward that the RBA might be forced to act in the long run and boost interest rates again. Markets will certainly be keen to hear the coming statements from the RBA in the next few months as a booming economy could put pressure on the RBA to act.

On the charts the AUDUSD has certainly been a little bearish as of late, but the strong jump the other day and the labour market stats have helped immensely. Today's USD figures also put pressure on the AUD, but it has remained above support at 0.7900 and this level is looking quite strong. If the market looks to extend further I would expect a rise up to the 0.8000 level and with more positive economic data a push through. 


Source link  
Oil slips further ahead of OPEC meeting

Oil markets have suffered another blow today as US oil inventories showed an increase of 2.07M barrels (-2.1M exp), while at the same time US gasoline...

Trade war fears to dominate market

After imposing tariffs on steel and aluminum imports on its closest allies, the U.S. will be facing enormous criticism at the G7 summit on Friday in Quebec...

USD in focus ahead of Non-farm

The USD will be in focus tomorrow as it's a key test of strength with the upcoming non-farm payroll data on the US economy. So far the markets...


Italy's risk contained; Trade war not on hold

Investor fears over Italy's political turmoil eased on Wednesday, leading to a sharp recovery in Italian assets, the Euro and global equities. Investor confidence that...

Key events to watch this week

After falling to a six-and-a-half month low against the dollar on Friday, the Euro bounced back early Monday following the Italian president's blocking...

Dollar hits new 2018 high after FOMC

While the financial markets continue to remain volatile with a number of different news events being monitored, the USD did manage to hit another...


Euro shakes off political risk

The Euro strengthened slightly early Thursday, to trade at 1.1837 after hitting a new five-month low of 1.1761 the previous day. It seems that the single...

Risk aversion returns on higher yields

U.S. consumers are becoming more confident to spend. U.S. retail sales increased 0.3% in April, and March figures were revised up to 0.8% from 0.6%. When...

U.K. jobs under the radar

Stocks in Asia were uninspired by the slight gains on Wall Street during Monday trading. Although the easing of U.S.- China trade tensions was...


In the past 24 hours Bitcoin has gained 2.36% and reached $6795.95. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.7729% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 12.48% and is now at $541.91. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets88%
2FXTMFXTM87%
3HYCMHYCM85%
4FIBO GroupFIBO Group80%
5FxProFxPro77%
6FXCMFXCM74%
7Alfa-ForexAlfa-Forex72%
8HotForexHotForex71%
9FP MarketsFP Markets70%
10XMXM69%
  


Share: