Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark EUR/USD currency exchange rate on the above daily MT 4 price action chart, the euro currency has made a recovery against the U.S. dollar. Price action is challenging the two hundred (200) day simple moving average.
Overnight, Treasury yields fell lower which put pressure on the greenback throughout the Forex world. U.S. Treasury yields fell alongside equity prices on Wall Street. Also, Forex traders started to doubt the faster than anticipated U.S. economic recovery from the coronavirus pandemic (Covid-19).
This saw money flow into safe haven asset classes. This, in turn, saw Treasury yields fall sharply lower. This was bad for the U.S. dollar and supported the euro currency.
As far as economic data was concerned, Forex traders ignored a Eurozone Sentix confidence index as well as Eurozone labor data. U.S. JOLTS jobs openings came in better than expected but ignored by dollar traders.
Today, the Federal Reserve Board will release their monthly monetary policy meeting minutes. The Eurozone is releasing final monthly purchasing managers’ index (PMI). Italy and the United Kingdom will also publish their monthly final monthly purchasing managers’ indices.
Federal Open Market Committee (FOMC) Dr. Charles Evans is giving commentary today and the United States will release monthly trade data and weekly crude oil inventory data.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at price action on the above daily chart, the euro currency surged on Tuesday as bulls came back into the EUR/USD Forex market. This led to the break above the 21 day simple moving average at 1.1858 and the current challenge of the two hundred (200) day simple moving average.
A daily close above the 200 day simple moving average at 1.1890 is needed is needed to challenge the next upside barrier lining up at 1.19. The 50 day simple moving average comes into focus at 1.1975.
Traders should note the 14 day relative strength index (RSI), which is below the mid-line. This could bring some short-term weakness back to the EUR/USD Forex market.
