Back
2 Feb 2015
EUR/USD needs to break range to set direction - FXStreet
FXStreet (Bali) - EUR/USD is trading higher at the open, last quoted at 1.1310 from a US close of 1.1275 last Friday, with Valeria Bednarik, Chief Analyst at FXStreet, noting that a break of either extreme of its curretn day range is required to set a clearer directional trend.
Key Quotes
"The last week of January ended up with the dollar quite mixed against its rivals, higher against commodity currencies but down against most of its major rivals. The dollar however edged higher on Friday, despite the advanced reading of Q4 GDP data, expected to come in at 3.3%, resulted at 2.6% almost half the third quarter final reading of 5%. Monday will bring PMI readings from Europe, generally expected to have ticked higher which can give the common currency some support."
"During the weekend, Greek PM Tsipras say announced some upcoming measures which include repaying its debt to the ECB and the IMF, but negotiate with the EZ countries the rest of the debt. It´s coalition partner, Kammenos, plans to propose a tax amnesty on undeclared incomes. The news may bring some relief to the common currency, and favor a gap to the upside with the weekly opening, dragging therefore high yielders higher."
"In the meantime, the EUR/USD trades below the 1.1300 level, maintaining the negative tone. Short term, the 1 hour chart shows that the price stands below both, 20 and 100 SMAs that converge at 1.1310 offering immediate short term resistance, whilst indicators grind lower in negative territory, pointing for a continued slide. In the 4 hours chart, price has been hovering around a directionless 20 SMA for most of the last few days, now a few pips below it, whilst indicators aim lower below their midlines, but lack momentum ahead of the opening."
"Some intraday lows in the 1.1250 price zone offer immediate support, whilst sellers have been surging around 1.1365, 50% retracement of the latest bearish run. A break of either extreme is required to take the pair out of its range and set a clearer directional trend."
Key Quotes
"The last week of January ended up with the dollar quite mixed against its rivals, higher against commodity currencies but down against most of its major rivals. The dollar however edged higher on Friday, despite the advanced reading of Q4 GDP data, expected to come in at 3.3%, resulted at 2.6% almost half the third quarter final reading of 5%. Monday will bring PMI readings from Europe, generally expected to have ticked higher which can give the common currency some support."
"During the weekend, Greek PM Tsipras say announced some upcoming measures which include repaying its debt to the ECB and the IMF, but negotiate with the EZ countries the rest of the debt. It´s coalition partner, Kammenos, plans to propose a tax amnesty on undeclared incomes. The news may bring some relief to the common currency, and favor a gap to the upside with the weekly opening, dragging therefore high yielders higher."
"In the meantime, the EUR/USD trades below the 1.1300 level, maintaining the negative tone. Short term, the 1 hour chart shows that the price stands below both, 20 and 100 SMAs that converge at 1.1310 offering immediate short term resistance, whilst indicators grind lower in negative territory, pointing for a continued slide. In the 4 hours chart, price has been hovering around a directionless 20 SMA for most of the last few days, now a few pips below it, whilst indicators aim lower below their midlines, but lack momentum ahead of the opening."
"Some intraday lows in the 1.1250 price zone offer immediate support, whilst sellers have been surging around 1.1365, 50% retracement of the latest bearish run. A break of either extreme is required to take the pair out of its range and set a clearer directional trend."