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8 Jan 2015
EUR/USD in oversold territory, bearish tone - FXStreet
FXStreet (Bali) - While EUR/USD remains in oversold territory, indicators are not suggesting that a meaningful recovery might be in store just yet, notes Valeria Bednarik, Chief Analyst at FXStreet.
Key Quotes
"The EUR/USD pair traded as low as 1.1801 this Wednesday, and bounced slightly after the release of the latest FOMC Minutes, showing that a rate like is unlikely at least for the next couple of meetings, and that the net effect of oil price prices decline is likely positive for the economy."
"Overall, the US Central Bank stance resulted mild dovish, with some officers expressing concerns over wages and global slowdown."
"Nevertheless, the US is in far better shape than Europe, as an early report showed the common area is in deflation with consumer prices down -0.2% yearly basis in December, while US ADP survey expects 241K new jobs added last December, and local deficit shrank to 39B."
Short term the EUR/USD 1 hour chart shows that the price pressures from below its 20 SMA, offering immediate resistance a few pips above current price, whilst indicators aim higher still below their midlines."
"In the 4 hours chart the 20 SMA stands at 1.1945 offering intraday resistance in case of further recoveries, albeit indicators maintain the bearish tone with RSI in oversold territory, not yet suggesting a firmer advance.
Key Quotes
"The EUR/USD pair traded as low as 1.1801 this Wednesday, and bounced slightly after the release of the latest FOMC Minutes, showing that a rate like is unlikely at least for the next couple of meetings, and that the net effect of oil price prices decline is likely positive for the economy."
"Overall, the US Central Bank stance resulted mild dovish, with some officers expressing concerns over wages and global slowdown."
"Nevertheless, the US is in far better shape than Europe, as an early report showed the common area is in deflation with consumer prices down -0.2% yearly basis in December, while US ADP survey expects 241K new jobs added last December, and local deficit shrank to 39B."
Short term the EUR/USD 1 hour chart shows that the price pressures from below its 20 SMA, offering immediate resistance a few pips above current price, whilst indicators aim higher still below their midlines."
"In the 4 hours chart the 20 SMA stands at 1.1945 offering intraday resistance in case of further recoveries, albeit indicators maintain the bearish tone with RSI in oversold territory, not yet suggesting a firmer advance.