Technical Analysis for EUR/USD (Daily)
Thursday, the market focus was the ECB and its economic policy meeting. As expected, the European Central Bank did not announce any new measures, centering on the implementation of the batch of policies announced last month.
The USD turned South ahead of the event, and the EUR/USD spiked during the press conference to 1.1398, in where ECB’s President, Mario Draghi, reckoned that the downward risk towards inflation persist, and that it may fall back into negative territory during the upcoming months, before picking up by the end of the year.
The Dovish tone of the press conference, and the failure of the single currency to regain the critical 1.1400 mark, resulted in an U-turn of the Buck, which rose as Mr. Draghi kept the door open for additional QE easing in the future.
EUR saw its gains fade after the market’s attention shifted towards the upcoming US Fed meeting next week, as traders expects a Hawkish statement, pre-announcing a June rate hike.
The EUR/USD pair where it began, below the 1.1300 mark and the 23.6% Fibo retracement of the latest daily Bullish run at 1.1315. The long upper wick of the daily candle suggests that Bulls are in retreat, implying the pair can fall further during the upcoming days.
From a technical outlook, the pair presents a Neutral to Bearish stance, as in the 4 hours, the price is below a horizontal 20-Day SMA, and the technical indicators are static within negative territory. The pair needs to break below 1.1220, the 38.2% Fibo retracement of the recent rally, or above 1.1460, the Key resistance, to be able to find a clear directional path.
Waiting to see…
Support marks:1.1270 1.1220 1.1160
Resistance marks: 1.1315 1.1340 1.1390
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