1. Hello Guest Click here to check FX Binary Point Financial Directory

EUR/USD: a bearish picture ahead of the FOMC - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar recovered its shine, edging higher against all of its major rivals, but the CAD that benefited from a continued recovery in oil prices.

    Key Quotes:

    "For a change, the greenback's steep appreciation took place in the US session, following the release of improved, but soft, local inflation figures. The CPI rose by 0.5% in the last 12 months to November, better than the previous 0.2% or the expected 0.4% advance, but remained unchanged in its monthly comparison. Also, the Empire State manufacturing survey showed that business activity declined for a fifth consecutive month, although less than expected, printing -4.59 in December.

    Things were slightly better in the EU, as the ZEW survey showed that the economic sentiment in the region improved to 33.9 from a previous 28.3, although missing market's expectations of 34.4. German figures however, resulted extremely positive.

    The EUR/USD pair rose up to 1.1059 ahead of the European opening, from where the dollar began to recover, gaining momentum after the release of US data. The pair fell down to 1.0903 before bouncing some, but maintains a short term negative tone, as in the 1 hour chart, the price has extended its decline below all of its moving averages, whilst the technical indicators have barely lost their bearish strength, but hold near oversold levels.

    In the 4 hours chart, the technical picture is also bearish as the pair broke with a long volume candle below its 20 SMA, while the technical indicators are now in bearish territory. Nevertheless, the market will move on sentiment this Wednesday, and following whatever the US Central Bank decides to do."
    For more information, read our latest forex news.

Share This Page