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EUR/USD: bears looking for a break below 1.0700 - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 9, 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 American dollar closed last week at its highest in several weeks against all of its major rivals, following the release of a shockingly positive US employment report. According to the latest release, the US economy added 271,000 new jobs in October, while the unemployment rate fell to 5.0%, its lowest in seven years.

    Key Quotes:

    "Wages also beat expectations, and have now risen 2.5% year over year, paving the way for a rate hike in December. The USD advanced sharply right after the release, and spent all of the American session consolidating its gains.

    Over the weekend, China released its trade balance figures, which shown a surplus of 393.2 billion Yuan in October. Exports declined for a fourth straight month, while Imports fell for a twelfth straight month, in line with the recent economic slowdown of the country. The dollar may advance further, and even gap at the opening, following this news.

    The EUR/USD pair dipped to 1.0703, to finally settle at 1.07381, unable to advance beyond 1.0760, now an immediate short term resistance. Trading at levels not seen since late April this year, the daily chart shows that the 20 SMA has crossed below the 100 and 200 SMAs far above the current level, whilst the technical indicators present strong bearish slopes, despite being in oversold territory, all of which supports further declines.

    In the 4 hours chart, the Momentum indicator aims higher below its 100 level, whilst the RSI indicator remains flat around 24, maintaining the risk towards the downside, particularly on a break below 1.0700."
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