Monday, November 16, 2015

Paris terror could see EUR crosses and stocks sold off

FXStreet (Guatemala) -The atrocities that occurred in Paris where over 129 people were killed in terror attacks by Islamist militants may be a temporary offer in Euro crosses and stocks in the open this week as markets take cover and run to safe havens.

The consensus is that a struggling EZ area will be impacted in respect of confidence and a drop in tourism and may be another reason for the ECB to take imminent action and extend their QE programme before the end of the year.

In respect to EURJPY, Valeria Bednarik, chief analyst at FXSreet explained,¨The EUR/JPY pair closed last Friday a few pips above the multi-month low set at 121.44 early November, at 131.66. The Japanese yen posted modest advances against all of it major rivals last week, as BOJ board member Yutaka Harada, suggested there's no imminent need for additional easing, despite inflation is still far from the Central Bank´s target.

Daily basis, the technical picture favors the downside, given that the price is far below its 100 and 200 SMAs, whilst the Momentum indicators is unable to advance beyond its 100 level and the RSI indicator turned lower around 35. In the 4 hours chart, the pair has met selling interest on approaches to a strongly bearish 100 SMA, currently at 132.60, whilst the technical indicators stand below their mid-lines, albeit lacking direction strength at the time being.¨
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