Another volatile week comes to an end in the FX market, which saw the FOMC changing its language and the SNB setting negative interest rates.
EUR/USD advanced during the first sessions and rose above 1.2500 supported by economic data, but came under renewed pressure after FOMC meeting and slid back below 1.2300 where it has spent the last sessions, having hit yet a fresh cycle low at 1.2233. Moreover, speculations of a full-blown QE program might be launched by the ECB next year, are keeping the euro at 2-year lows versus the dollar.
Next week the Q3 gross domestic product revision and a series of economic indicators will be released in the US just before the Christmas holidays.
As for EUR/USD technicals, indicators are correcting from oversold territory in weekly charts, but the overall picture remains strongly bearish with squaring positions into the year-end could contribute to market volatility next week.
Smaller time frames also hold a bearish picture. A break below 1.2233 (2014 low Dec 19) should pave the way for a fall toward 1.2200 en-route to 1.2133 (monthly low Aug 2012).
On the other hand, EUR/USD needs at least to regain the 1.2500 mark to ease the bearish pressure and attempt a recovery toward 1.2645 (23.6% retracement of the 1.3992-1.2233 drop).
View Live Chart for EUR/USD
EUR/USD advanced during the first sessions and rose above 1.2500 supported by economic data, but came under renewed pressure after FOMC meeting and slid back below 1.2300 where it has spent the last sessions, having hit yet a fresh cycle low at 1.2233. Moreover, speculations of a full-blown QE program might be launched by the ECB next year, are keeping the euro at 2-year lows versus the dollar.
Next week the Q3 gross domestic product revision and a series of economic indicators will be released in the US just before the Christmas holidays.
As for EUR/USD technicals, indicators are correcting from oversold territory in weekly charts, but the overall picture remains strongly bearish with squaring positions into the year-end could contribute to market volatility next week.
Smaller time frames also hold a bearish picture. A break below 1.2233 (2014 low Dec 19) should pave the way for a fall toward 1.2200 en-route to 1.2133 (monthly low Aug 2012).
On the other hand, EUR/USD needs at least to regain the 1.2500 mark to ease the bearish pressure and attempt a recovery toward 1.2645 (23.6% retracement of the 1.3992-1.2233 drop).
View Live Chart for EUR/USD
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