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EUR/USD: downside playing out ahead of full market's rtn

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/USD is down to start the week off in early Asia and 2016.

    The price ended 2015 spiraling below the 200 SMA on the hourly time frame to lose the 1.09 handle and took out the support at 1.0900 en route to 1.0800 through 1.0850. The current low for the session so far is 1.0845 and we now look ahead for the week's events to guide direction in the price with a number of key releases from both the EZ and US. EZ kicks off with German CPI's which may ignite the trade-off between the greenback and euro in the divergence that is between the ECB and Fed to start us off for the year in a continuation of the downtrend. The FOMC minutes are up in the middle of the week while the main event of interest comes in Nonfarm Payrolls on Friday in the US.

    EUR/USD levels

    Technically, EUR/USD is making its way lower through the 1.10819/1.0796 band of support. A break below the floor of that supporting band opens scope for 1.0523 recent lows. Currently we suspect that the 20 day ma will hold the initial test – but only temporarily. Crucially, we are below the 20 DMA at 1.0916, which is highly bearish. 1.1042 stands as key resistance being the 200 DMA.
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