EUR/USD: consolidation on 1.07 handle before risk events

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/USD is currently trading at 1.0721 with a high of 1.0762 and a low of 1.0674.

    EUR/USD has made a minor recovery on the charts in the US session and a clean break towards the April lows of 1.0520 looks unlikely as markets start to consolidate after the recent surge in the outlook for economic growth in the US economy as registered through the recent Nonfarm Payrolls data. We are awaiting key Fed speakers this week, including Yellen's welcoming remarks at the Conference on Monetary Policy Implementation and Transmission in the Post-Crisis Period.

    We are also holding out for the EZ's 15Q3 GDP. Analysts at TD Securities explained their outlook, "We see downside risks to the euro area GDP report for 15Q3, with TD expecting a 0.3% q/q gain against market consensus of a 0.4% q/q increase," adding, "We've been recently surprised on the downside by some of the September industrial production numbers, with the disappointment likely to have just pulled the quarterly GDP number down to 0.3%."

    EUR/USD levels

    Technically, EUR/USD recently dropped below the May and July lows at 1.0819/08 and trades with a bearish bias below the 200 SMa on the hourly chart at 1.0891. The April lows at 1.0520 are the key main target that guards the 1.0457 March low. However, some consolidation is taking place on the 1.07 handle. 1.0789 would need to break for a recovery and test towards less bearish grounds and 5th Nov highs at 1.0893.
    For more information, read our latest forex news.

Share This Page

free forex signals