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5 Jan 2015
EUR/USD: Above 1.1955 may fill the gap - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, above 1.1955 EUR/USD may fill the gap, but it will take a strong advance beyond 1.2000 to deny further falls.
Key Quotes
"The EUR/USD pair started this 2015 diving down to the 1.2000 mark, as it closed last week a couple pips above the level. Greece continues to be under the spotlight, as the country will hold general elections next Jan. 25th, and the opposing Syriza party is maintaining the lead according to recent polls, weighting on the common currency."
"During the weekend, news quoting “unidentified government officials in Berlin” hit the wires with headlines saying German’s Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble both view the EZ as capable of surviving a probable Greece’s departure. Europe may cope with a Grexit, but seems the EUR won’t, especially considering market expectations are of a QE announcement on the upcoming ECB meeting, scheduled for Jan 22nd."
"The pair fell sharply with the weekly opening, gapping lower to 1.1905 so far and with a strong bearish momentum coming from short term readings, as the 1 hour chart shows the price well below its moving averages, and indicators heading into extreme oversold levels."
"In the 4 hours chart, indicators turned sharply down with the gap, with RSI hitting 13 at the opening. The pair has little support until the 1.1900 price zone, next huge midterm support."
"If however the price manages to recover above 1.1955 it may fill the gap, but it will take a strong advance beyond 1.2000, something pretty unlikely now, to deny further falls."
Key Quotes
"The EUR/USD pair started this 2015 diving down to the 1.2000 mark, as it closed last week a couple pips above the level. Greece continues to be under the spotlight, as the country will hold general elections next Jan. 25th, and the opposing Syriza party is maintaining the lead according to recent polls, weighting on the common currency."
"During the weekend, news quoting “unidentified government officials in Berlin” hit the wires with headlines saying German’s Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble both view the EZ as capable of surviving a probable Greece’s departure. Europe may cope with a Grexit, but seems the EUR won’t, especially considering market expectations are of a QE announcement on the upcoming ECB meeting, scheduled for Jan 22nd."
"The pair fell sharply with the weekly opening, gapping lower to 1.1905 so far and with a strong bearish momentum coming from short term readings, as the 1 hour chart shows the price well below its moving averages, and indicators heading into extreme oversold levels."
"In the 4 hours chart, indicators turned sharply down with the gap, with RSI hitting 13 at the opening. The pair has little support until the 1.1900 price zone, next huge midterm support."
"If however the price manages to recover above 1.1955 it may fill the gap, but it will take a strong advance beyond 1.2000, something pretty unlikely now, to deny further falls."