Monday, November 16, 2015

EUR/USD supply capping minor recovery on 1.07 handle

FXStreet (Guatemala) - EUR/USD is starting to consolidate the downside of today's opening session in Asia after the terror attacks in Paris sent supply in the euro across the board while investors predict a recession in Paris after a second major blood-bath in under a year and sight the ECB ever keener to extend and expand monetary policy before the end of the financial year in an already deflationary EZ.

The price recovered from the lows, but remained repressed by the better offered and risk-off theme in markets that awaiting a potential sell off in the stock markets when European and London desks return to position accordingly while the true extent to this will start to be unveiled and setting the scene for the week ahead that see's a number of key data releases as well. We will get the final FOMC minutes before the last meeting of the year where it is widely expected that the Fed will start to normalise its interest rate policy by hiking rates for the first time in over a decade.

EUR/USD levels

Technically, remains under pressure following its recent break below the May and July lows at 1.0819/08 as recently noted by Karen Jones, chief analyst at Commerzbank. "The loss of this support has opened the way for further losses to the 1.0520, the April low and the 1.0457 March low." 1.1000 is the key resistance on the wide and only a break above here would alleviate the continued selling pressure.
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