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14 Jan 2015
EUR/USD down to a ten year low - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that
the EUR/USD reached a fresh almost 10-year low of 1.1726 this Wednesday.
Key Quotes:
"Fuelled by the decision of the European Court of Justice, ruling the OMT bond-buying program is in line with the European Union law, as long as certain conditions are met".
"Seen by markets as a green light for QE, investors rushed to sell the EUR across the board".
"Later on the day, news that US Retail Sales fell for the most in almost a year, sent the dollar sharply down across the board, with the EUR/USD reaching a daily high of 1.1846. But as the dust settled and falling stocks support demand of safe-havens, the greenback came back with the pair trading around its daily opening and below the 1.1800 mark".
"The dominant bearish trend remains firm in place considering the pair set a lower high and a lower low daily basis, despite choppy intraday price action. In the short term, the 1 hour chart shows that the price stands between 20 and 100 SMAs, both flat and within a 30 pips range, a clear reflection of the lack of direction, while indicators turned lower but remain above their midlines".
"In the 4 hours chart price holds below a flat 20 SMA, while indicators bounced from oversold levels but stalled below their midlines and are slowly turning back lower, all of which supports the longer term view".
the EUR/USD reached a fresh almost 10-year low of 1.1726 this Wednesday.
Key Quotes:
"Fuelled by the decision of the European Court of Justice, ruling the OMT bond-buying program is in line with the European Union law, as long as certain conditions are met".
"Seen by markets as a green light for QE, investors rushed to sell the EUR across the board".
"Later on the day, news that US Retail Sales fell for the most in almost a year, sent the dollar sharply down across the board, with the EUR/USD reaching a daily high of 1.1846. But as the dust settled and falling stocks support demand of safe-havens, the greenback came back with the pair trading around its daily opening and below the 1.1800 mark".
"The dominant bearish trend remains firm in place considering the pair set a lower high and a lower low daily basis, despite choppy intraday price action. In the short term, the 1 hour chart shows that the price stands between 20 and 100 SMAs, both flat and within a 30 pips range, a clear reflection of the lack of direction, while indicators turned lower but remain above their midlines".
"In the 4 hours chart price holds below a flat 20 SMA, while indicators bounced from oversold levels but stalled below their midlines and are slowly turning back lower, all of which supports the longer term view".