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2 Mar 2015
EUR/USD: Strength short lived - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar started the week with a strong note.
Key Quotes:
"...gapping higher against most of its rivals following PBoC decision on cutting rates by surprise on Saturday, maintaining the positive tone all through the day."
"The EUR/USD pair saw an intraday recovery up to 1.1240 on the back of better-than-expected EZ employment and inflation figures, but the pair failed to sustain gains above the 1.1200 mark during the US session, with the dollar regaining the upside following US Markit Manufacturing PMI up to a four-month high of 55.1."
"Nevertheless the common currency is set to remain under selling pressure amid speculation the ECB will start flooding the region with extra money. From a technical point of view, the 1 hour chart shows that the price develops well below its 100 SMA, currently around 1.1270, while the price struggles around a flat 20 SMA and the technical indicators present a mild positive tone around their mid-lines, limiting the downside in the short term."
"In the 4 hours chart the 20 SMA has gained a strong bearish slope, acting as dynamic resistance around the critical 1.1250 level, while the Momentum indicator heads higher below 100 and the RSI stands around 37 after correcting overbought readings. Having set a weekly low around 1.1160, a break below the level should see the pair extending down to 1.1130, en route to 1.1097 this year low."
Key Quotes:
"...gapping higher against most of its rivals following PBoC decision on cutting rates by surprise on Saturday, maintaining the positive tone all through the day."
"The EUR/USD pair saw an intraday recovery up to 1.1240 on the back of better-than-expected EZ employment and inflation figures, but the pair failed to sustain gains above the 1.1200 mark during the US session, with the dollar regaining the upside following US Markit Manufacturing PMI up to a four-month high of 55.1."
"Nevertheless the common currency is set to remain under selling pressure amid speculation the ECB will start flooding the region with extra money. From a technical point of view, the 1 hour chart shows that the price develops well below its 100 SMA, currently around 1.1270, while the price struggles around a flat 20 SMA and the technical indicators present a mild positive tone around their mid-lines, limiting the downside in the short term."
"In the 4 hours chart the 20 SMA has gained a strong bearish slope, acting as dynamic resistance around the critical 1.1250 level, while the Momentum indicator heads higher below 100 and the RSI stands around 37 after correcting overbought readings. Having set a weekly low around 1.1160, a break below the level should see the pair extending down to 1.1130, en route to 1.1097 this year low."