Monday, October 12, 2015

EUR/USD at critical bullish levels

FXStreet (Guatemala) - EUR/USD is trading at key technical levels while the greenback has subtly given back ground across the board as the majority of the market has started to price out a 2015 Fed hike.

October has been a bull trend so far with support from the golden cross to start us off at the beginning of the month when the price was penetrating the 1.12 handle and now taking us back towards the highs of September at 1.1459.

The recent FOMC minutes have told the market that unless jobs don't improve, the conditions are not going to be met in order to reach a decision to hike interest rates and how they are concerned for overseas risks. This was heard from the ECB as well for the EZ and indeed Draghi says they are ready when appropriate to take additional easing measures at the same time that the IMF are encouraging the Central Bank to do so. With respect to inflation, both the EZ and US will release CPI data for September.

EUR/USD bullish/neutral ( pivot 1.1338, positive MA's and daily momentum)

EUR/USD remains bid above the 20 DMA after penetrating 1.1250 with closes last week in an extension of the golden cross between the 50/200 DMA's on the at the end of Sep and start of this month's business circa 1.1170.

Technically, Valeria Bednarik, chief analyst at FXStreet explained, "In the 4 hours chart, the 20 SMA maintains a bullish slope well below the current level, whilst the technical indicators have lost their upward strength, but hold near overbought levels. The pair needs now to advance beyond 1.1426, to test the critical resistance area around 1.1460, with a break above it, confirming a bullish continuation during the upcoming sessions. "
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