22 Mar 2015
EUR/USD opens higher in Asia
FXStreet (Bali) - EUR/USD has been trading higher in interbank trading, last at 1.0840 from 1.0820 NY close, with Valeria Bednarik, Chief Analyst at FXStreet, noting that the bounce could extend if the US data continues to miss expectations.
Key Quotes
"The more dovish than expected FED, resulted in the well needed USD bearish corrective movement that then resulted in a higher EUR/USD: the pair saw a short lived spike up to 1.1041, before closing the week below 1.0865, the 38.2% retracement of the latest bearish rally, measured from 11533, to the record low set this month at 1.0460."
"Many are speculating the pair has set a low and is due for a stronger upward continuation, but that's quite an early call considering the pair has been in a steady decline for almost a year already, from a top se at 1.3992 in April 2014."
"Nevertheless, this 350 pips recovery has been the largest upward corrective move in the same time frame, and can extend particularly if the US data continues to miss expectations. During the upcoming days the country will release housing data, CPI figures, Durable Goods Orders and its GDP by Friday, and all of them will make a clearer picture of what's next for the pair."
"The intraday picture favors the upside, as the price holds below the mentioned Fibonacci level, tested last Friday, whilst the 20 SMA presents a strong bullish slope below the current price, offering dynamic support around 1.0690. In the same chart, the Momentum indicator turned lower, losing its upward strength, but holding well into positive territory, while the RSI indicator stands flat around 64, all of which should keep the downside limited in the short term."
Key Quotes
"The more dovish than expected FED, resulted in the well needed USD bearish corrective movement that then resulted in a higher EUR/USD: the pair saw a short lived spike up to 1.1041, before closing the week below 1.0865, the 38.2% retracement of the latest bearish rally, measured from 11533, to the record low set this month at 1.0460."
"Many are speculating the pair has set a low and is due for a stronger upward continuation, but that's quite an early call considering the pair has been in a steady decline for almost a year already, from a top se at 1.3992 in April 2014."
"Nevertheless, this 350 pips recovery has been the largest upward corrective move in the same time frame, and can extend particularly if the US data continues to miss expectations. During the upcoming days the country will release housing data, CPI figures, Durable Goods Orders and its GDP by Friday, and all of them will make a clearer picture of what's next for the pair."
"The intraday picture favors the upside, as the price holds below the mentioned Fibonacci level, tested last Friday, whilst the 20 SMA presents a strong bullish slope below the current price, offering dynamic support around 1.0690. In the same chart, the Momentum indicator turned lower, losing its upward strength, but holding well into positive territory, while the RSI indicator stands flat around 64, all of which should keep the downside limited in the short term."