The euro has come under some pressure generally, presently showing an average 0.3% decline versus the dollar, yen and sterling. The biggest loss is to the pound, which has rebounded on news that PM May will be allowing parliament to debate the government’s negotiating stance ahead of triggering Article 50. EURUSD has clocked a 10-week low at 1.1015, making this the third straight day a lower low has been seen, over which time the pair has shed 1.7%. Fed tightening expectations (all of our post-employment data survey respondents expected a tightening to occur at the December 13-14 FOMC meeting) have juxtaposed to ECB policymakers recent downplaying last week’s Bloomberg report that an internal consensus had been reached to taper the QE program.
EURUSD’s technical picture remains one of bearish momentum. The pair has broken back below, and posted two daily closes below, the 200-day moving average, which is presently sitting at 1.1172. The clear break of the 200 DMA, which was confirmed yesterday generated a SHORT position this morning which was entered at 1.1035. The next downside targets are Target 1 1.0950, the recent July low and Target 2 1.0917, the June low.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register the next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.