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27 Feb 2015
EUR/USD gains capped at 1.1263 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, shares the possible price action by EUR/USD into the German CPI data release.
Key Quotes
“The EUR/USD pair fell to a low of 1.1182 in the previous session on the stronger than expected US core inflation data as well as hawkish comments from Fed officials.”
“The early failure to sustain above 1.1366 (38.2% retracement of 1.1096-1.1532), coupled with failure to reposing to German data had opened doors for a sell-off towards 1.1314 levels.”
“A sticky core inflation number in the US, along with the upbeat durable goods data pushed the pair below 1.1263 (61.8% retracement) leading to a sharp sell-off towards 1.1182 as stops were triggered.”
“The hawkish comments from San Francisco Fed’s John Williams and St Louis Fed’s James Bullard further added to the bearish pressure.”
“The pair currently trades 1.1212, after having bounced-off from 1.1199 (76.4% retracement).”
“The preliminary German CPI in Feb is seen falling 0.3%. The pair could dip below 1.1199 and extend losses to 1.1150 if the preliminary reading prints well below the expected fall of 0.3%.”
“Meanwhile, a positive surprise could provide some scope for technical recovery, however, gains are expected to be capped around 1.1263.”
Key Quotes
“The EUR/USD pair fell to a low of 1.1182 in the previous session on the stronger than expected US core inflation data as well as hawkish comments from Fed officials.”
“The early failure to sustain above 1.1366 (38.2% retracement of 1.1096-1.1532), coupled with failure to reposing to German data had opened doors for a sell-off towards 1.1314 levels.”
“A sticky core inflation number in the US, along with the upbeat durable goods data pushed the pair below 1.1263 (61.8% retracement) leading to a sharp sell-off towards 1.1182 as stops were triggered.”
“The hawkish comments from San Francisco Fed’s John Williams and St Louis Fed’s James Bullard further added to the bearish pressure.”
“The pair currently trades 1.1212, after having bounced-off from 1.1199 (76.4% retracement).”
“The preliminary German CPI in Feb is seen falling 0.3%. The pair could dip below 1.1199 and extend losses to 1.1150 if the preliminary reading prints well below the expected fall of 0.3%.”
“Meanwhile, a positive surprise could provide some scope for technical recovery, however, gains are expected to be capped around 1.1263.”