The EUR/USD pair consolidated its losses around the 1.0600 level for most of the last two sessions, holding between 1.0588 and 1.0629 ever since Draghi announced the latest ECB economic policy decision. The ECB has extended its QE program until December 2017, but between April 2017 and the new proposed end, it reduced the size of the bond purchases to €60 billion, from current €80 billion. Draghi added that taper was not discussed, while risks to growth remain towards the downside, overall highlighting the divergences between the Union and the US, where a rate hike is expected to be announced next week.
Data released so far today showed that the trade balance's surplus shrank in Germany, down to €20.5B in October, from a previously revised €21.1B. Exports grew by 0.5% from previous -1.0%, while imports rose by 1.3% beating expectations of 1.0%. Later today, the US will release its Michigan Consumer Sentiment Index for December, and Wholesales Inventories for October. The first will, indeed be the most relevant.
From a technical point of view, the risk has turned back towards the upside, although intraday, the latest consolidation has left indicators without directional strength. In the 4 hours chart, the pair has been steadily meeting selling interest on approaches to the 100 SMA, while technical indicators remain horizontal near oversold levels.
A break below 1.0580 is what it takes to see further slides today, with the next intraday supports at 1.0540 and 1.0500. A recovery above 1.0630 can see the pair correcting higher towards 1.0670/90, although selling interest will likely surge around this last.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.