FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the currencies had, once again, little to offer to investors this Monday, as a limited volatility prevailed all through the sessions.
Key Quotes:
"The early risk aversion triggered by the terrorist attacks on France during the weekend, eased as the day went by, with safe havens giving back all of their intraday gains by the US close. In Europe, the release of October CPI figures showed that inflation remains subdued in the EU, up 0.1% monthly basis as expected, hardly affecting the market. In the US the November Empire State Manufacturing Survey indicated that business activity declined for a fourth consecutive month, resulting at -10.74 against the -6.00 expected. Nevertheless, the imbalance between both Central Banks continued leading the pair, which fell to fresh lows below the 1.0700 level by the end of the day.
Technically, the short term picture favors further declines as the price develops well below a bearish 20 SMA, whilst the technical indicators head south below their mid-lines. In the 4 hours chart, the technical indicators gained bearish momentum after failing to overcome their mid-lines, whilst the price was unable to advance beyond a horizontal 20 SMA, currently around 1.0750. Should the price break below 1.0670, the multi-month low set last week, the bearish continuation may extend below the 1.0600 level this Tuesday."
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