Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD: Appetite for new highs? big 1.10 level lies ahead
FXStreet (Bali) – EUR/USD is building up on recent gains during Asia as broad-based USD weakness continues to be the dominant theme, with the rate currently exchanging hands around 1.0940, some 20/30 odd pips from its US high of 1.0967.
Overcrowded USD longs, revision in US industrial sector
While EUR/USD’s 1+ cent relief rally on Tuesday came fast and furious with no catalyst of real substance behind – other than an overcrowded USD long market and a revision of the US industrial sector – the daily chart still shows sellers enjoying the upper hand as long as 1.10 is kept. Market sources are currently reporting euro stop buy orders gathering above 1.0975 handle.
CoT report failed to reveal new clues due to Yellen’s speech
As per last week’s CoT report, we didn’t see a major commitment from the short side in EUR/USD up to Tuesday last week, mostly because Yellen was due to speak later on that week. Fed’s Chair slightly more hawkish comments, however, were key to see what is assumed to be a re-engagement of the smart money on downside bets.
EUR/USD technicals: Aware what lies ahead (1.10) but further advances in the cards
Valeria Bednarik, Chief Analyst at FXStreet, notes: “Technically, the 1 hour chart shows that the sharp advance stalled around the pair’s 200 SMA, whilst the 20 SMA heads higher below the current level, and that the technical indicators are beginning to turn lower in overbought territory.”
“In the 4 hours chart, the price has advanced strongly above its 20 SMA whilst the Momentum indicator continues to head sharply higher above the 100 level, and the RSI hovers around 59, all of which supports additional advances, should the price extend beyond the 1.0960 region”, Valeria adds.
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EUR/USD: Appetite for new highs? big 1.10 level lies ahead
Source: FXStreet
