EUR/USD: Quantifiably Engaging


Best analysis

It has been an eventful 24 hours in the trading realm following a veritable lack of activity to start the week thanks in large part to a couple of central bank meetings and some telling data about both European and US economies. As covered extensively yesterday (here and here), the Federal Reserve decided to completely taper away Quantitative Easing, a move that was widely anticipated, but also acknowledged more succinctly that the economy was improving to their liking. The positive vibes from the Fed were substantiated this morning as the Advanced US GDP for the third quarter showed stronger growth (3.5%) than expected (3.1%), and combined with Q2 (an upwardly revised 4.6%), was the strongest 6 month showing in a decade. Was the Fed privy to this before they released their statement yesterday? One can only theorize.


In addition to the US proliferation of news, the Reserve Bank of New Zealand shifted away from their hawkish stance to mimic their Australian brethren and go neutral while German and Spanish inflation data regressed even further, sporting negative values. If the European Central Bank didn’t already have a good argument for initiating their QE program, the continuously declining inflation figures in the region tips it in to the almost necessary category. Despite the positivity in the US and the negativity in the European Union, the EUR/USD has bounced off the lows following yesterday’s big drop.

The bounce in the EUR/USD also happened to coincide with a confluence of Fibonacci retracements and extensions that formed a Gartley pattern below 1.26. This level could be a staging point for another retracement to take place before we see an ultimate fall in this pair, which is the direction the ECB most likely wants to see it go.

EURUSD 2H

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures