The EUR/USD pair is pointing to close the week above the 1.1200 level for this first time in over a month, with the dollar hit by the latest FOMC Minutes, which erased the last hopes of a rate hike in the US for this 2015. And despite ECB Accounts of the latest meeting was also dovish, the European Central Bank maintained its status quo, confirming that they will maintain the ongoing QE until September 2016 or beyond, if required.
The global economic slowdown and the low inflation levels worldwide are the main concerns these days, and during the upcoming week, almost all the major economies will release their September inflation figures, poised to be the main market movers, and are generally expected to remain low. Even is the outcome results better-than-expected in one or some of them, it won't be enough to bring the due relief to investors.
View the Live chart of the EUR/USD
In the meantime, the EUR is surging alongside with stocks, which recovered strongly on the back of commodities rallying. The EUR/USD pair traded as high as 1.1378, and so far, is finding short term interest buying interest around 1.1335, a strong static support. The pair is also pointing to close the week above the post-NFP high, quite a significant bullish signal.
Daily basis, the pair is being led higher by a daily ascendant trend line coming from 1.1104, and the technical indicators suggest the rally may continue, as the RSI heads north around 59. The par is above its 20 SMA, but the daily moving averages remain horizontal, as a consequence of the limited monthly range since late July. In the weekly chart, the price has managed to held once again above its 20 SMA that also lacks directional strength, although the technical indicators head higher above their mid-lines, in line with some further advances.
The key level to watch now is 1.1460, as a break above is required to confirm additional gains, up to 1.1620 for the upcoming days. Above this last, 1.1713, the high posted last August, comes next. Below the mentioned 1.1335, the pair can go down to the 1.1240/60 region, where buying interest should appear to halt the decline and keep the upside favored. Below it however, the pair has scope to extend its decline down to the 1.1120/60 price zone.
Latest updates on the EUR/USD Forecast
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