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EUR/USD upside still intact before ECB next week

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - EUR/USD is attempting the upside, but falling shy yet again of the 1.15 handle and there is a lack of conviction on the daily chart.

    The dollar has managed to pick up some interest on the CPI's, (1.9% vs 1.8% exp 1.8% and prev), and took the major down to the 1.1363/80 support while otherwise, the pair was on target for a test of the 200 SMA on the hourly chart at 1.1324 currently.

    We have representatives of both the ECB and FOMC today, with first ECB's Nowotny speaking in Warsaw said, "In my view it's quite obvious that additional sets of instruments are necessary," which does not bode well for euro bulls with the forthcoming ECB next and possibility of a extension to QE. However, analysts at BTMU explained, "... we expect no change in stance at the meeting – admittedly though, it is becoming a close call."

    We had a series of Fed speakers again today, most attention of which was paid to Dudley as usual. But as usual, there was nothing affirmed and markets are left guessing, weighing on the greenback. You can read more here on Dudley and here on how the markets have priced out a 2015 Fed hike already.

    EUR/USD upside intact still

    Technically, Valeria Bednarik, chief analyst at FXStreet, explained that in the 4 hours chart, the price fell briefly below its 20 SMA, whilst the technical indicators continue correcting lower from extreme overbought readings. Nevertheless, buyers are aligned in the 1.1380/1.1400 region, meaning it will take a clear break below this level, to confirm a continued decline for this Thursday.
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