3 Aug 2015
EUR/USD US session wrap up - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar closed the day generally higher across the board, supported amongst other things, by a slump in oil prices, with Brent crude below $50 and WTI nearing $45 a barrel.
Key Quotes:
"Commodities came under pressure during the Asian session following the release of poor Chinese manufacturing figures, signalling further economic slowdown in the country. In Europe, the release of local PMI for July showed that the sector continued expanding in the area, despite the Greek manufacturing PMI plunged to 30.2, which maintained the EUR limited below the 1.1000 level against the greenback."
"Later on in the day, US data came out mixed, with an uptick in the PCE price index, whilst personal income came up 0.4% and personal spending increased 0.2%. The ISM manufacturing fell to a 3-month low of 52.7 in July, whilst the Markit reading came out flat at 53.8. Finally, construction spending posted its smallest gain in five months, up 0.1% in June."
"The EUR/USD closed the day near its daily low of 1.0940, and with the technical picture favouring another leg lower for the upcoming session, as the 1 hour chart shows that the price remained contained below its 100 SMA in its attempts to advance, while the 20 SMA heads lower above the current price and the technical indicators remain below their mid-lines, although lacking directional strength albeit the restricted intraday range."
"In the 4 hours chart, the price is below a bearish 20 SMA, whilst the technical indicators diverge from each other, but in neutral territory. At this point the price needs to break below the 1.0920 level to be able to extend its losses towards the 1.0840/60 region, while approaches to 1.1000 will likely continue to be seen as selling opportunities."
Key Quotes:
"Commodities came under pressure during the Asian session following the release of poor Chinese manufacturing figures, signalling further economic slowdown in the country. In Europe, the release of local PMI for July showed that the sector continued expanding in the area, despite the Greek manufacturing PMI plunged to 30.2, which maintained the EUR limited below the 1.1000 level against the greenback."
"Later on in the day, US data came out mixed, with an uptick in the PCE price index, whilst personal income came up 0.4% and personal spending increased 0.2%. The ISM manufacturing fell to a 3-month low of 52.7 in July, whilst the Markit reading came out flat at 53.8. Finally, construction spending posted its smallest gain in five months, up 0.1% in June."
"The EUR/USD closed the day near its daily low of 1.0940, and with the technical picture favouring another leg lower for the upcoming session, as the 1 hour chart shows that the price remained contained below its 100 SMA in its attempts to advance, while the 20 SMA heads lower above the current price and the technical indicators remain below their mid-lines, although lacking directional strength albeit the restricted intraday range."
"In the 4 hours chart, the price is below a bearish 20 SMA, whilst the technical indicators diverge from each other, but in neutral territory. At this point the price needs to break below the 1.0920 level to be able to extend its losses towards the 1.0840/60 region, while approaches to 1.1000 will likely continue to be seen as selling opportunities."