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19 May 2015
EUR/USD might see further declines – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes EUR/USD technicals remain supportive of further declines in the pair, with ECB member talks over QE and Greece along with the upbeat US housing starts acting as the catalyst for the move lower.
Key Quotes
“The EUR/USD pair trades at its lowest level in almost 2 weeks, having fell as low as 1.1159 with the European opening, on the back of ECB's officers talks over QE and Greece.”
“Executive Board member Coeure said that the Central Bank will likely accelerate its bond purchases on May and June because of seasonal factors, whilst added that negative rates are actually no risk for the ECB. Also, EU Commission chief Junker said that there are no chances they will reach a deal with Greece, increasing exponentially the risk of a default in the troubled country.”
“Macroeconomic data was not EUR supportive either, as the German ZEW survey showed that economic sentiment fell to its lowest since late December, whilst EU inflation remained steady at 0.0% yearly basis in April.”
“The EUR/USD aimed to regain the 1.1200 figure, but failed to do so ahead of US housing data that surprised to the upside: building permits and housing starts, both beat expectations in April, giving additional support to the greenback.”
“Technically, the 1 hour chart shows that price stands well below its moving averages, whilst the technical indicators head sharply lower despite being in oversold levels.”
“In the 4 hours chart, the technical picture alos favors the downside, with the pair nearing 1.1120, a critical Fibonacci support, as a break below it exposes the 1.1000 figure for the upcoming sessions.”
“Support levels: 1.1120 1.1050 1.1000”
“Resistance levels: 1.1200 1.1245 1.2280”
Key Quotes
“The EUR/USD pair trades at its lowest level in almost 2 weeks, having fell as low as 1.1159 with the European opening, on the back of ECB's officers talks over QE and Greece.”
“Executive Board member Coeure said that the Central Bank will likely accelerate its bond purchases on May and June because of seasonal factors, whilst added that negative rates are actually no risk for the ECB. Also, EU Commission chief Junker said that there are no chances they will reach a deal with Greece, increasing exponentially the risk of a default in the troubled country.”
“Macroeconomic data was not EUR supportive either, as the German ZEW survey showed that economic sentiment fell to its lowest since late December, whilst EU inflation remained steady at 0.0% yearly basis in April.”
“The EUR/USD aimed to regain the 1.1200 figure, but failed to do so ahead of US housing data that surprised to the upside: building permits and housing starts, both beat expectations in April, giving additional support to the greenback.”
“Technically, the 1 hour chart shows that price stands well below its moving averages, whilst the technical indicators head sharply lower despite being in oversold levels.”
“In the 4 hours chart, the technical picture alos favors the downside, with the pair nearing 1.1120, a critical Fibonacci support, as a break below it exposes the 1.1000 figure for the upcoming sessions.”
“Support levels: 1.1120 1.1050 1.1000”
“Resistance levels: 1.1200 1.1245 1.2280”