Tuesday, November 17, 2015

EUR/USD at fresh 7-month lows, Paris attacks weigh

FXStreet (Bali) - Amid thin liquidity, the EUR/USD has taken yet another hit south, printing a fresh 7-month low at 1.0660, fast approaching its multi-month bear trend low of 1.0463 reached last March 13th.

EUR still weighed by Paris attacks

News wires are running no new fundamental catalyst that may be attributed to the latest decline in the shared-currency, which continues to be unsupported by the horrendous Paris attacks. The market now sees the ECB with no other option but to extend its QE program - potentially increase size - and even cut rates further, in order to stimulate growth in a continent that should pay its toll from the fluid situation in Paris, as travel, tourism, retail consumption will all be affected, hampering growth prospects in the EU.

EUR/USD technicals

Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "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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