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EUR/USD confident with chest out towards key 1.1400

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/USD has risen from the support of the 20 SMA on the hourly chart reaching highs of 1.1380 so far in the US session at the end of the week.

    The greenback has been in supply on the back of a not very convincing or committed FOMC from yesterday's minutes that disappointed the markets that are trying to find a definitive timing or absolute conditions that are deemed to be appropriate by the FOMC for lift-off.

    Draghi sends mixed details to IMF

    In respect to the EZ, Draghi recently submitted a statement to the IMF that was released over Bloomberg stating that risks to growth remain to the downside and the ECB is ready to use all the instruments available and can adjust QE accordingly to accommodate the slowdown although inflation is seen rising towards the year's end. A slightly mixed outlook, but risks are mounting to the downside and that should keep the euro in check. The lofty heights of 1.1400 may start to attract sellers if history is indeed anything to go by.

    EUR/USD bulls looking to 1.1405

    From a technical standpoint, 1.1710 has been the highest level since end of August business while 1.1459 on the 17th of September was the last high as a target for the bulls. Momentum remains strong on the 4hr and nearer terms charts while RSI remains below the overbought mark on the 4hr as well at 68, indicating that this has further to run targeting 1.1405 R3.
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