Tuesday, October 27, 2015

EUR/USD: All about Central Banks this week, again... - FXStreet

FXStreet (Guatemala) - Analysts at FXStreet explained that the American dollar ended the day with limited losses across the board, with the EUR/USD pair up to 1.1067 during the US session.

Key Quotes:

"Markets were still digesting the latest economic policy decisions from the ECB and the PBoC, whilst waiting for the FED and the BOJ later on this week. As for the macroeconomic picture, German business confidence fell for the first time in four months in October, according to the latest IFO survey, as the index declined to 108.2 from 108.5 in September.

In the US, New Home sales was a huge disappointment, as during September, fell 11.5% to an annual rate of 468,000, the lowest level in 10 months. Also, the Dallas Fed Manufacturing Index came in at -12.7 for October, well below the estimated -6.5% in October.

The poor figures in the US had done little against Draghi's words, as the EUR/USD pair has been pretty much consolidating its latest losses, with no aims of changing its newly acquired bearish trend.

The short term picture continues to favor the downside, given that the price is barely hovering above a flat 20 SMA, whilst the technical indicators have lost their upward strength after gaining positive territory, and now turn south.

In the 4 hours chart, the 20 SMA has extended its slide and presents a sharp bearish slope well above the current level, whilst the Momentum indicator heads higher, but below the 100 level, and the RSI indicator consolidates around 30 after correcting extreme oversold readings."
For more information, read our latest forex news.

No comments:

Post a Comment