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17 Mar 2015
EUR/USD downside limited for now - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair erased all of its intraday gains after posting a fresh weekly high of 1.0650 early in the US session.
Key Quotes:
"EUR/USD pair erased all of its intraday gains following worse-than-expected US housing data, showing housing starts plunged in February by 17%."
"A side from employment data, macroeconomic figures in the US have been quite disappointing this March, although the American dollar has maintained its strength."
"That's why Wednesday's FOMC Minutes are so relevant because it will shed light on whether the Central Bank will weight this temporal slowdown in its decision of rising rates or not."
"By contrast, the European data released early Tuesday beat expectations, with improved employment and confidence readings. Anyway, the pair trades right below the 1.0600 figure, and will likely remain range bound ahead of FED's decision next Wednesday afternoon."
"From a technical point of view, the 1 hour chart shows that the price holds above a bullish 20 SMA, whilst the 100 SMA stands around the 1.0570 price zone, the first time the price overcomes it since late February. The technical indicators in the mentioned time frame have lost the upward strength, but remain in positive territory, which should keep the downside limited in the short term."
"In the 4 hours chart the price holds above a flat 20 SMA, currently around 1.0560, whilst the Momentum indicator continues to head higher above 100 and the RSI turned lower around 47, limiting in this case, the upside."
Key Quotes:
"EUR/USD pair erased all of its intraday gains following worse-than-expected US housing data, showing housing starts plunged in February by 17%."
"A side from employment data, macroeconomic figures in the US have been quite disappointing this March, although the American dollar has maintained its strength."
"That's why Wednesday's FOMC Minutes are so relevant because it will shed light on whether the Central Bank will weight this temporal slowdown in its decision of rising rates or not."
"By contrast, the European data released early Tuesday beat expectations, with improved employment and confidence readings. Anyway, the pair trades right below the 1.0600 figure, and will likely remain range bound ahead of FED's decision next Wednesday afternoon."
"From a technical point of view, the 1 hour chart shows that the price holds above a bullish 20 SMA, whilst the 100 SMA stands around the 1.0570 price zone, the first time the price overcomes it since late February. The technical indicators in the mentioned time frame have lost the upward strength, but remain in positive territory, which should keep the downside limited in the short term."
"In the 4 hours chart the price holds above a flat 20 SMA, currently around 1.0560, whilst the Momentum indicator continues to head higher above 100 and the RSI turned lower around 47, limiting in this case, the upside."