Richard Perry
Independent Analyst
There are mixed signals on the euro of late. In some ways yesterday’s session was a touch disappointing as an outside day was recorded after a new low was hit at $1.3436 and a subsequent rally was seen. However the rally could not be sustained and not the euro has formed a second consecutive “doji” candlestick which denotes uncertainty with the prevailing trend. The bears will argue that this is exactly what happened at the end of last week, but this time around the RSI is at 30 which leads to the prospect of a technical rally (although momentum is still very weak on MACD and stochastics). It is difficult and often unwise to bat against the trend and a stepped decline seems to be moving towards the $1.3375 implied target from the double top. However, I would say that the chances of a rally are improving but there needs to be a signal first. That would probably be a move above yesterday’s reaction high at $1.3484. The issue would be then the matter of significant overhead supply at $1.3500 and then $1.3550 and most importantly at $1.3575. It is unlikely that any technical rally would get very far before the selling pressure tells once more.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.