On yesterday session the EURUSD fell with a high range and closed in the red, near the low of the day, in addition managed to close below previous day low, suggesting a continuation of the strong bearish momentum.
The pair closed for the first time below 50-day moving average that is now acting as a dynamic resistance.
The key levels to watch are: the 10-day moving average at 1.08768 (resistance), the 1.0819 (resistance), the 50-day moving average at 1.0800 (resistance), a Fibonacci extension at 1.0703 (support) and a daily support at 1.0622.
EUR/USD Plunges to One-Month Low as Core Inflation Slows for Second Consecutive Month In a surprise move, the EUR/USD sold-off sharply on Tuesday, hitting a one-month low of $1.071, or about 1 percent. The sell-off came as a surprise because the Euro tends to perform better against the U.S. Dollar during periods of investor uncertainty when the stock market is trending lower. This typically occurs because the low yields in the Euro Zone have made the Euro a funding currency.
Today’s buying is likely related to the favorable U.S. interest differential which shows the U.S. 2-Year Treasury Notes trading about 1 percent higher than its European counter-part. Technical factors may have also contributed to the weakness since the recent month-long short-covering rally seems to have lost momentum when buyers failed to drive the EUR/USD over $1.1000.
In other news, Spanish Unemployment Change came in at -55.8K, better than the -52.6K estimate. The German Unemployment Change at -14K also bested its -7K estimate.
Euro Zone CPI Flash Estimate was 0.2%, lower than the 0.4% estimate. Core CPI Flash Estimate was 0.9%, below the 1.0% estimate. The data showed that the Euro Zone Core Inflation slowed for the second consecutive month in December. This also helped pressure the EUR/USD because it reinforced the possibility that the European Central Bank will have to add further stimulus to prop up consumer prices and boost growth.
The GBP/USD lost ground on Monday despite a stronger than expected Construction PMI report. The latest figure came in at 57.8, better than the 56.1 estimate. The British Pound has been under pressure lately as investors continue to push forward the timing of the next Bank of England interest rate hike. Additionally, investors are paring positions due to the uncertainty of the referendum later this year that will decide whether the U.K. remains a member of the European Union.
EUR/USD is between resistance 1.0780 and 1.0735 for the moment I will be watching and waiting for the price under the support level.
The EUR/USD testing the resistance at 1.0800 and i think it is a good point to open a position today.
Yes it looks like that
German Retail Sales Return to Growth in November Retail sales for Germany posted worse-than-expected results in the eleventh month of 2015, according to the latest report from the German statistical office (Destatis) released on Thursday.
Retail turnover rose 0.2% in real terms month-on-month in November, up from the 0.4% drop recorded in the previous month, and below market expectations of a 0.5% increase.
Measured on an annual basis, the gauge advanced 2.3% in the reported period following an increase of 2.5% in the preceding month, while analysts had projected a pick-up of 3.7%.
Turnover in retail trade in the first eleven months of 2015 was in real terms 2.8% and in nominal terms 2.8% larger than in the corresponding period of the previous year, the report said.
The retail sales index, also known as 'real retail sales', is the primary gauge of consumer spending which measures the change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. The figure is also an important component of GDP.
The euro recovered some of the losses against the US dollar on Wednesday. The single currency broke the three-day negative series and gain some advantage over the dollar. The increase was not significant and so the pair still remains far from the level of the first resistance at 1.1003. Short-term expectations remain in favor of the euro. Wednesday session started at a price of 1.0747 and ended only with 32 pips higher. A significant increase was registered at the end of trading when was reached the peak for the day at 1.0798.
On yesterday session the EURUSD initially fell but found enough buying pressure to turn around and closed in the green near the high of the day, in addition managed to close within the previous day range, suggesting a week bullish momentum.
The pair closed for the second time below 50-day moving average that is acting as a dynamic resistance.
The key levels to watch are: the 10-day moving average at 1.0864 (resistance), the 1.0819 (resistance), the 50-day moving average at 1.0800 (resistance), a Fibonacci extension at 1.0703 (support) and a daily support at 1.0622.
The euro started the 2015 with a break below the psychological level at 1.20. The price rebounded from a 12-year low at 1.0465. In a case of breakthrough below this level, the pair should meet the support at 1.0240 and 1.0090 - low of 07.2002 If the direction of movement reverses, a strong resistance can be expected at 1.1180, 1.1490 and 1.1760.
Euro zone unemployment rate falls to 4-year low in November The euro zone’s unemployment rate fell to the lowest level in more than four years in November, fueling optimism over the health of the region's economy, official data showed on Thursday.
In a report, Eurostat said that the euro zone’s unemployment rate fell to a seasonally adjusted 10.5% from 10.6% in October. This is the lowest rate recorded in the euro area since October 2011. Analysts had expected the jobless rate to inch up to 10.7% in November.
The EU28 unemployment rate dipped from 9.2% in October to 9.1% in November, the lowest since July 2009.
Among the member states, the lowest unemployment rates were recorded in Germany (4.5%) and the highest in Greece (24.6% in September 2015) and Spain (21.4%).
EUR/USD was trading at 1.0845 from around 1.0843 ahead of the release of the data, while EUR/GBP was at 0.7441 from 0.7439 earlier.