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EUR/USD: 1.0750 fading opportunity - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair extended its decline down to 1.0622 at the beginning of the American afternoon, but held around 1.0650 ahead of the event of the day, the release of the FOMC October meeting Minutes.

    Key Quotes:

    "The FED made some hawkish shifts to its previous statement back then, mentioning that it will determine “whether it would be appropriate to raise the target range at its next meeting” triggering a strong dollar rally that prevails up to these days. The release of the minutes drove the pair down to 1.0616, a fresh multi-month low, as the statement says that “it may well become appropriate” to raise the benchmark lending rate in December, although officers remarked that the decision is still data dependant.

    Bottom line, the minutes confirmed what the market suspects that is, that a lift off could be triggered next December, but of course, it's still not confirmed. The dollar retreated against most of its rivals after the initial spikes, but maintains a dominant bullish tone, which should lead to a continued advance over the upcoming sessions.

    Technically, the pair's 4 hours chart shows that the price is developing below a bearish 20 SMA whilst the technical indicators are advancing from oversold levels, but remain well below their mid-lines. The upward corrective movement can extend on a rally beyond 1.0690, although the risk remains towards the downside, and selling interest will likely surge on advances up to the 1.0750 region."
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