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31 Aug 2015
EUR/USD in a bearish trend after Jackson Hole
FXStreet (Guatemala) - EUR/USD is opening Asia below 1.1200 with a bearish bias, slipping away from the handle while the initial focus to start the week is on the sentiment taken up from the weekend's round up from the Central Bankers attending the Jackson Hole who are staying the course despite the recent market turmoil and heightened awareness of global risks, summarized here.
With September still a possibility for lift- off, the dollar is firmer and continuing on from a more solid close to last week. EUR/USD fell from the 24th August highs of 1.1713 along a decisive bearish trend to current levels as the market turmoil tailed off progressively throughout the week while markets soaked up the general sentiment of voting and non-voting Fed members who continued to in common to suggest that the economy was firming.
This hawkish sentiment, coupled with impressive data release from the US supported a recovery in the greenback. For the start of the month, we will be shifting attentions from the weekends events to the forthcoming key data releases ahead of the Fed meeting and decision on the 17th September, and such data will include the ADP report and the Nonfarm Payrolls to start with, then we have PPI's, Michigan Sentiment and Retail Sales, Empire States Manufacturing and Industrial Production to follow leading into the two-day meeting.
EUR/USD hourly 50 DMA approaching 200 DMA; bearish
Technically, the picture is bearish near term while changing hands below the 1.1460/70 level ahead of 1.1560. This is likely to be a key area of resistance on recoveries. The 200 DMA on the hourly comes as 1.1286 and would be the first major resistance ahead of the descending 50 DMA at 1.1310 today. The daily sticks offer a more neutral outlook, although with MACD turning more negative. On a continuation of the downtrend, the base of the channel is located at 1.0875.
Valeria Bednarik, chief analyst at FXStreet noted for the 4 hours chart outlook, that "The technical indicators are hovering with no directional strength near oversold territory, whilst the 20 SMA maintains a sharp bearish slope well above the current price, supporting the longer term view."
With September still a possibility for lift- off, the dollar is firmer and continuing on from a more solid close to last week. EUR/USD fell from the 24th August highs of 1.1713 along a decisive bearish trend to current levels as the market turmoil tailed off progressively throughout the week while markets soaked up the general sentiment of voting and non-voting Fed members who continued to in common to suggest that the economy was firming.
This hawkish sentiment, coupled with impressive data release from the US supported a recovery in the greenback. For the start of the month, we will be shifting attentions from the weekends events to the forthcoming key data releases ahead of the Fed meeting and decision on the 17th September, and such data will include the ADP report and the Nonfarm Payrolls to start with, then we have PPI's, Michigan Sentiment and Retail Sales, Empire States Manufacturing and Industrial Production to follow leading into the two-day meeting.
EUR/USD hourly 50 DMA approaching 200 DMA; bearish
Technically, the picture is bearish near term while changing hands below the 1.1460/70 level ahead of 1.1560. This is likely to be a key area of resistance on recoveries. The 200 DMA on the hourly comes as 1.1286 and would be the first major resistance ahead of the descending 50 DMA at 1.1310 today. The daily sticks offer a more neutral outlook, although with MACD turning more negative. On a continuation of the downtrend, the base of the channel is located at 1.0875.
Valeria Bednarik, chief analyst at FXStreet noted for the 4 hours chart outlook, that "The technical indicators are hovering with no directional strength near oversold territory, whilst the 20 SMA maintains a sharp bearish slope well above the current price, supporting the longer term view."