9 Mar 2015
EUR/USD eyeing March 2003 low at 1.0765 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, gives the technical outlook for EUR/USD, expecting a fresh sell-off for the pair around 1.0880-1.09 levels.
Key Quotes
“The shared currency fell sharply on Friday after a better-than-expected jobs report in the US once again underscored the growing monetary policy divergence between the European Central Bank (ECB) and the Federal Reserve. While most central banks have already eased or telegraphing a first interest rate hike, the European Central bank shall begin its QE program today.”
“Consequently, the EUR is the worst performing currency so far this year and is down more than 3% in the first week of March.”
“Moreover, the pair has ignored the recent upbeat economic data and the upward revision of the GDP and long term inflation forecasts by the ECB last week.”
“On the charts, the pair sees no signs of reversal as the relentless selling continues.”
“An early attempt to extend gains above 1.0850 failed post which the pair hit a daily low of 1.0834. If anything, a minor corrective rally to 1.0880 could be seen as the RSI is extremely oversold in the hourly and 4-hourly charts.”
“However, a fresh selling pressure can be anticipated around 1.0880-1.09 levels. Meanwhile, a repeated failure to rise above 1.0850 could push the pair below 1.085 levels.”
Key Quotes
“The shared currency fell sharply on Friday after a better-than-expected jobs report in the US once again underscored the growing monetary policy divergence between the European Central Bank (ECB) and the Federal Reserve. While most central banks have already eased or telegraphing a first interest rate hike, the European Central bank shall begin its QE program today.”
“Consequently, the EUR is the worst performing currency so far this year and is down more than 3% in the first week of March.”
“Moreover, the pair has ignored the recent upbeat economic data and the upward revision of the GDP and long term inflation forecasts by the ECB last week.”
“On the charts, the pair sees no signs of reversal as the relentless selling continues.”
“An early attempt to extend gains above 1.0850 failed post which the pair hit a daily low of 1.0834. If anything, a minor corrective rally to 1.0880 could be seen as the RSI is extremely oversold in the hourly and 4-hourly charts.”
“However, a fresh selling pressure can be anticipated around 1.0880-1.09 levels. Meanwhile, a repeated failure to rise above 1.0850 could push the pair below 1.085 levels.”