OctaFX | OctaFX Forex Broker
Entrar
Abrir conta
Back

Forex: EUR/USD, sellers negate the 1.35 handle

The Euro continues its struggle to get out of second gear, with the low conviction to participate on yesterday's false break of 1.35 against the US Dollar perhaps the first symptom that speculators are starting to get sidelined ahead of potential sensitive headlines coming out of the G20 meeting the next two days.

AsFan Yang, contributor at FXstreet.com, and chief analyst at FXTimes, notes, "the market is likely squaring up and staying put ahead of the G20 risk event on Friday."

Much of the G20 market attention has turned toward the Yen, yet as Greg McKenna, Global FX CEO, says, referring to an article from James MackIntosh at the Financial Times, "the real currency war that matters is the one that is getting the least amount of attention and which we mentioned yesterday which is the value of the Chinese Renmimbi and the petrodollar block."

The present intraday volatility in EUR/USD can be classified as painfully erratic, with yesterday's break of 1.35 failing to garner enough follow through, before a a sharp retracement back below 1.3450 levels.

While it is mandatory that one gets prepared for potential price destabilizing headlines, the EUR/USD in particular should not be directly affected, despite one of the self-fulfilling prophecies to help explain inconsistency in the Euro could refer to growing reservation in case more European official continues to make references to the 'overvalued' level of the Euro, a 'hot topic', although one that ECB President Mario Draghi has qualified as way overdone.

The current market conditions, therefore, leaves us a mundane picture to potentially increase price activity in EUR/USD, other than through some headlines-fueled spikes or perhaps some key technical breaks.

EUR/USD, as FXWW Founder Sean Lee explains, "is being purely used as an instrument for cross trading, rallying in early Europe as stops were triggered in EUR/CHF and as EUR/GBP buyers emerged, then retracing when activity in the crosses died down."

Looking at the technical side, according to Valeria Bednarik, chief analyst at FXstreet.com: "The daily chart shows a long upper shadow in Wednesday candle which point for further slides" she says, although all within a context, which Valeria refers as " still far from bearish..."

Valeria adds: "The hourly chart shows price trading in between Fibonacci levels, finding buyers in the 1.3430 area, 23.6% retracement of its latest daily fall, while indicators hold in neutral territory. The support to watch is the 1.3350 recent lows, ahead of the daily ascendant trend line today around 1.3270. Only below this last bears may gain control, still quite far away."

Forex: GBP/USD stalls the fall ahead of 1.5500

With volatility in Cable back on track, doubled since late mid Nov when reached 10 year lows, GBP/USD is last at fresh 6-month lows 1.5522, down -1.68% for the week so far, and -4.42% since start of 2013. Following yesterday's BoE inflation report, when Cable dipped thru the 1.5650 level, next biggest risk event ahead comes Friday with UK retail sales data.
Leia mais Previous

Session Recap: BoJ holds steady; Kiwi at 1.5 year high

The lack of activity in the Asian session saw G10 currencies moving in very slow motion, to the point of one thinking chart had gone frozen post Japan lunch time. Not even the BoJ uneventful monetary policy decision - all left as it was while waiting the new central bank governor appointment - managed to bring much volatility to the Yen crosses. One currency that continued to make merits to appreciate, and that indeed rose to a fresh 2-year high against the USD, is the Kiwi, receiving an early boost after both manufacturing and confidence readings came better-than-expected.
Leia mais Next
Começar chat ao vivo