Eur/usd - page 434
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On Friday session the single currency continued to depreciate against the US dollar for a second day, which marked another negative week. The daily decline amounted to 65 pips to a closing price of 1.1310 as the pair traded within the extreme values 1.1379 and 1.1282. The price remains below average values, while the index of relative strength is in support of bears. A breakthrough of 1.1280 will lead to further decline.
On the last Friday’s session the EURUSD plunged with a wide range and close near the low of the day, in addition managed to close below the previous day low, suggesting a strong bearish momentum.
The pair is trading below the 10-day moving average that is acting as a dynamic resistance and closed below the 50-day moving average that should also act as other dynamic resistance although is still trading above the 200-day moving average that act as a dynamic support.
The key levels to watch are: Daily resistance at 1.1459, the 10-day moving average at 1.1404 (resistance), the 50-day moving average at 1.1332 (resistance), a daily support at 1.1237, a swing low at 1.1141 (support) and a daily support at 1.1097.
EURUSD REACHING A BOTTOM?
The single currency recorded slight increase against the dollar on Monday, breaking a two-day negative series. The pair moved within a narrow range with extreme values reached at 1.1341 and 1.1301, and finally the euro rose 11 pips to a closing price of 1.1319. Index relative strength develops in negative territory as the price remains limited by the resistance at 1.1350 and moving averages upwards.
Weidmann: Central Bank Blurs Lines Between Monetary & Fiscal Policy
Jens Weidmann, the president of Deutsche Bundesbank and European Central Bank (ECB) Governing Council member, said that the ECB may be blurring the lines between monetary and fiscal policy.
He said to German newspaper Die Welt that that these blurred lines could be the reason for recent criticism of the ECB's monetary policy.
Weidmann also said that the Governing Council was of the opinion that monetary policy needs to expand in the current economic environment and that both himself and ECB President Mario Draghi see eye to eye on the importance of price stability.
"We may sometimes come to different conclusions on difficult issues but when it comes to the importance of price stability and the economic conditions for that, we agree."
He also said that recent discussion and criticism surrounding the ECB had some grounds: "The vehemence of the debate perhaps also stems from some of the measures we have taken so far having blurred the boundaries between monetary and fiscal policy and having redistributed government liability risks via central bank balance sheets."
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Yesterday EURUSD initially rose but found enough selling pressure at the 50-day moving average to give back some of its gains but closed in the green, although near the low of the day, but managed to close within the Fridays range, suggesting being slightly on the bearish side of neutral.
The pair is trading below the 10 and the 50-day moving averages that are acting as dynamic resistances although still trading above the 200-day moving average that is acting as a dynamic support.
The key levels to watch are: Daily resistance at 1.1459, the 10-day moving average at 1.1367 (resistance), the 50-day moving average at 1.1333 (resistance), a daily support at 1.1237, a swing low at 1.1141 (support) and a daily support at 1.1097.