Eur/usd - page 368

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The EUR/USD recorded a new low this week at 1.0803 and it seems the daily candle will closed red for the 3rd day, I see that the next level will be at 1.0788 support.

 

The EUR/USD recorded a new low this week at 1.0803 and it seems the daily candle will closed red for the 3rd day, I see that the next level will be at 1.0788 support.

 

​The EUR/USD recorded a new low this week at 1.0803 and it seems the daily candle will closed red for the 3rd day, I see that the next level will be at 1.0788 support.

 

The euro recorded a second consequential reduction against the dollar on Thursday. Bearish sentiment was again leading and so the pair broke the support at 1.0838, after hitting bottom for the day at 1.0802. If expectations for the continuation of the downward trend is justified, currencies will test the level at 1.0795. The session on Thursday started at 1.0906, but in the first hours the single currency suffered losses. So the sessions closed at 1.0825.

 

Yesterday the EURUSD fell with a narrow range and close near the low of the day, in addition closed below the previous day low, all suggesting that the bears remain in control.

The 50-day moving average is acting as a dynamic support and held the price yesterday plus a close below it would signal a stronger bearish move.

The key levels to watch are: the 10-day moving average at 1.0928 (resistance), the 1.0900 (resistance), the 50-day moving average at 1.0824 (support), 1.0819 (support) and 1.0703 (support).

 

It was ordinary Friday with tight pattern for the EUR/USD, but surely the 1.0800 level will not hold on next week.

 

EUR/USD is trading over the support level 1.0800, but the trading range is tight for today.

 

EUR/USD Forecast Dec. 21-25 EUR/USD was certainly pressured lower by the Fed hike. In the week of Christmas, the calendar is relatively light, but there are still some interesting developments that could rock the euro on low liquidity. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

German data was relatively mixed with one survey, ZEW, beating expectations while the other, IFO came a bit below them. Also PMIs didn’t change the balance and neither did Draghi: his attempts to do damage control have very limited success. However, Draghi probably got what he wished for from the Fed: the historic rate hike was not dovish and consisted of intention to raise more than expected in 2016.

Updates:

  1. Spanish elections: Sunday, initial results before markets open with full results later on. Spain’s traditional two party system is about to change with four big parties trying to garner votes. According to polls, no party is set to win an absolute majority. The best outcome for markets is a coalition between the current ruling center right PP and the new Ciudadanos party. Other coalitions, such as led by the left wing PSOE and Podemos are also possible. The worst outcome would be a situation of a hung parliament. A clear result would help the euro.
  2. German PPI: Monday, 7:00.
  3. Bundesbank monthly report: Monday, 11:00. The German central bank publishes an assessment about the state of the German economy. The recent global developments have been better than the worst that was feared. In addition the VW crisis is not as huge as predicted.
  4. Consumer Confidence: Monday, 15:00. This official publication by Eurostat showed ongoing negative sentiment in the euro-zone, with -6 points, better than in previous months but still showing pessimism.
  5. German import prices: Tuesday, 7:00. Prices of imported goods feed into inflation and due to low oil prices (among other factors), import prices have been negative. A drop of 0.3% was recorded in October and another slide is likely now.

read more

 

EU Preview: Turbulent Year in Euro Zone May See Turbulent Finale in Spain Spanish voters will head to polling stations on Sunday to elect all 350 members of the Congress of Deputies or the lower house, and 208 of the Senate's 266 seats.

The end of a year in the euro area that saw radical changes at the helm in Greece and Portugal may bring some surprises in Spain, too. Spaniards will seal their approval or rejection of four years of the conservative government under Prime Minister Mariano Rajoy. He has navigated the nation through the troubled waters of severe economic hardship following Spain’s banking crisis accompanied by a property crash into recovery. As a result, Spain was in a deep recession until 2013.

 

Interesting week ahead.

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