All Articles Tagged - EURUSD

Technical Analysis – EURUSD drops below parity but remains above descending trendline

Posted on October 31, 2022 at 8:35 am GMT

EURUSD has been losing ground since the beginning of the year, creating a clear structure of lower highs and lower lows. Although the pair managed to cross above both its descending channel and the 50-day simple moving average (SMA), it quickly retraced lower slightly below parity. The momentum indicators currently suggest that bullish forces are subsiding but still hold the upper hand. Specifically, the RSI is pointing downwards above its 50-neutral mark, while the MACD histogram is softening above both zero [..]

Daily Market Comment – ECB hammers euro down, earnings roil Wall Street

Posted on October 28, 2022 at 9:08 am GMT

Euro slides despite triple-barrel ECB rate hike Yen inches lower as BoJ refuses to adjust policy Stock markets retreat after soft Amazon earnings Cautious ECB message An overload of crucial events has left global markets on edge, with investors still trying to digest policy decisions from the European and Japanese central banks, the latest GDP report from the United States, and a flurry of corporate earnings that warned of economic storm clouds. In euro land, the ECB rolled out another [..]

Week Ahead – Fed and BoE to raise rates ahead of US payrolls

Posted on October 27, 2022 at 1:53 pm GMT

Another extraordinary week is coming up. The Fed is almost certain to raise rates, putting the spotlight on Chairman Powell, who needs to open the door for a smaller rate hike in December without giving the impression of a pivot. Meanwhile, central bank decisions in the UK and Australia will be crucial for those currencies, before the week concludes with the latest edition of nonfarm payrolls. Fed pivot? Not quite A three-quarter percentage point rate increase from the Federal Reserve [..]

Technical Analysis – EURUSD bears show up ahead of ECB rate decision

Posted on October 27, 2022 at 9:39 am GMT

EURUSD lost momentum after speeding up to the six-week high of 1.0092 in the four-hour chart. According to the RSI and the stochastics, the pair has reached overbought levels, making a downside correction possible ahead of the ECB policy announcement. Yet, sellers may not take a lead if the support around the 78.6% Fibonacci retracement of the 1.0197-0.9535 downleg stands firm at 1.0054. In this case, the price could pivot northwards with scope to test September’s high of 1.0197. A decisive close above [..]

Daily Market Comment – Dollar extends slide; ECB and BoJ take center stage

Posted on October 27, 2022 at 8:34 am GMT

US dollar drops more on receding bets of Fed rate hikes Euro reclaims parity ahead of ECB decision BOJ expected to maintain ultra-loose strategy EU shares gain but Wall Street falls on disappointing earnings Dollar adds to losses as BoC shift adds to speculation of a Fed pivot The US dollar kept sliding yesterday on firmer views that the Fed will slow the pace of its interest rate hiking cycle. Following Tuesday’s disappointing data, market participants may have become more [..]

Technical Analysis – EURUSD surges above parity level after 1 month

Posted on October 26, 2022 at 1:59 pm GMT

EURUSD is creating a bullish rally, adding more than 2% in the market, after surpassing the long-term descending trend line. The pair also jumped above the parity level and any more advances may confirm an upside correction. Regarding the technical indicators, the MACD is ticking above the zero level in the positive region, while the RSI is pointing upwards in the bullish area. Another step higher may reach a key resistance at 1.0200 ahead of the 1.0355 peak. Should this prove a weak [..]

ECB policy meeting: Is more than a rate hike on the table? – Forex News Preview

Posted on October 26, 2022 at 10:43 am GMT

With inflation five times its target, the ECB has certainly more work to do to achieve its price stability goal. On Thursday, the central bank is largely expected to repeat September’s triple rate hike even though a recession looms ahead. Any comments on the terminal rate level and plans for quantitative tightening could make the meeting relatively special, although such discussions might be premature at the moment. A cloudy economic outlook Financial conditions are not bright in the euro area. The European [..]

Daily Market Comment – Chinese yuan hits record low, earnings season fires up

Posted on October 25, 2022 at 9:18 am GMT

China’s offshore yuan slides to new lows amid capital exodus Dollar retreats after soft business surveys, antipodeans struggle Stock markets run into resistance ahead of big tech earnings Escaping China Investor concerns around China’s economic trajectory reached a crescendo this week, hammering the offshore yuan down to new record lows as capital outflows escalated. With President Xi Jinping tightening his grip on power, the fear is that economic growth will become a second-tier priority, and policies such as draconian covid [..]

Daily Market Comment – Yen intervention fails, politics boosts sterling

Posted on October 24, 2022 at 9:17 am GMT

Japanese authorities suspected of stepping into FX market again Sterling climbs as Sunak takes political lead, Fed lifts Wall Street Euro unfazed after European PMIs, China shows signs of stress FX intervention Japanese authorities most likely conducted another operation in the currency market, deploying their vast firepower of FX reserves to shore up the sinking yen. Like a bolt out of the blue, the yen stormed higher last week and then again on Monday, with the moves being so sharp [..]

Technical Analysis – EURUSD tests 50-day SMA and returns lower again

Posted on October 24, 2022 at 6:40 am GMT

EURUSD stretched its upside movement towards the descending trend line and the 50-day simple moving average (SMA) near 0.9900 but is quickly returning those gains. The MACD is holding above its trigger and zero lines in the negative region, while the RSI is ticking slightly lower around the 50 level, confirming the recent downside momentum. A pullback may meet immediate support around the 20-day SMA at 0.9785, while even lower the bears could try to overcome the 0.9630 barrier. Should [..]

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