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13 Mar 2015
EUR/USD: Bearish bias firmly in place - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained the conditions surrounding the euro from European and US markets.
Key Quotes:
"In Europe, macroeconomic data showed that German inflation ticked slightly higher as expected, but remained far from the ideal 2.0% target, whilst the Euro zone Industrial Production grew by 1.2% yearly basis in January, despite it fell 0.1% that month."
"In the US, Retail Sales unexpectedly decreased in February for a third consecutive month, and it was once again blamed on the bad weather, whilst weekly unemployment claims fell back below 300K, down to 285K in the week ending March 6."
"The dollar downward corrective movement was seen by many as a chance to buy it cheaper, as the EUR/USD retraced strongly from a daily high set at 1.0683, spending most of the American session consolidating around the 1.0600 figure."
"In the short term, the 1 hour chart shows that the price holds above a mild bullish 20 SMA, while the Momentum indicator retraces from overbought territory and the RSI indicator turned lower and hovers around 51. In the 4 hours chart, the price was capped by a bearish 20 SMA, currently around 1.0680, while the Momentum indicator aims higher below 100 and the RSI turns lower around 33 after erasing the extreme oversold readings reached at the beginning of the day. The overall bearish trend remains firm in place, and will likely resume in the short term on a break below the 1.0550 static support level."
Key Quotes:
"In Europe, macroeconomic data showed that German inflation ticked slightly higher as expected, but remained far from the ideal 2.0% target, whilst the Euro zone Industrial Production grew by 1.2% yearly basis in January, despite it fell 0.1% that month."
"In the US, Retail Sales unexpectedly decreased in February for a third consecutive month, and it was once again blamed on the bad weather, whilst weekly unemployment claims fell back below 300K, down to 285K in the week ending March 6."
"The dollar downward corrective movement was seen by many as a chance to buy it cheaper, as the EUR/USD retraced strongly from a daily high set at 1.0683, spending most of the American session consolidating around the 1.0600 figure."
"In the short term, the 1 hour chart shows that the price holds above a mild bullish 20 SMA, while the Momentum indicator retraces from overbought territory and the RSI indicator turned lower and hovers around 51. In the 4 hours chart, the price was capped by a bearish 20 SMA, currently around 1.0680, while the Momentum indicator aims higher below 100 and the RSI turns lower around 33 after erasing the extreme oversold readings reached at the beginning of the day. The overall bearish trend remains firm in place, and will likely resume in the short term on a break below the 1.0550 static support level."