16 Dec 2014
EUR/USD: risk leads, dollar to extend its decline – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet anticipates USD to extend its decline against the EUR, expecting the EUR/USD pair to advance further if it climbs towards 1.2570 level.
Key Quotes
“Oil collapse continues to lead the markets, alongside with Russian Ruble falling by hundreds of pips at the time. Panic rules markets, stocks are in the red in Europe, and safe-haven yen stands once again as the overall winner of the day.”
“In Europe, data was overall positive with EZ PMI above expected, rising confidence in Germany according to ZEW survey, and a wider surplus in the euro zone trade balance.”
“The EUR/USD pair surged up to 1.2569 a 4-week high with the news, retracing early US session. In the US, building permits printed 1.035M, and housing starts came out at 1.0328M both slightly below expected."
“Technically, the 1 hour chart shows the price steady around 1.2530 and well above its moving averages, while indicators are getting exhausted in overbought territory.”
“In the 4 hours chart however, indicators maintain a strong upward momentum as 20 SMA provides support around 1.2440.”
“Another run towards 1.2570 should anticipate further advances, with large stops suspected above the 1.2600 figure: if triggered, expect dollar sell-off to extend into FOMC meeting next Wednesday.”
Key Quotes
“Oil collapse continues to lead the markets, alongside with Russian Ruble falling by hundreds of pips at the time. Panic rules markets, stocks are in the red in Europe, and safe-haven yen stands once again as the overall winner of the day.”
“In Europe, data was overall positive with EZ PMI above expected, rising confidence in Germany according to ZEW survey, and a wider surplus in the euro zone trade balance.”
“The EUR/USD pair surged up to 1.2569 a 4-week high with the news, retracing early US session. In the US, building permits printed 1.035M, and housing starts came out at 1.0328M both slightly below expected."
“Technically, the 1 hour chart shows the price steady around 1.2530 and well above its moving averages, while indicators are getting exhausted in overbought territory.”
“In the 4 hours chart however, indicators maintain a strong upward momentum as 20 SMA provides support around 1.2440.”
“Another run towards 1.2570 should anticipate further advances, with large stops suspected above the 1.2600 figure: if triggered, expect dollar sell-off to extend into FOMC meeting next Wednesday.”