Category: EUR/USD Daily

EUR/USD erases recovery – 5 reasons



EUR/USD managed to recover from the Fed fallout (which sent it below the H&S line) but this may be over now, with the pair digging to fresh lows.

Can it challenge 1.25? Here are the reasons for the fall.

  1. Japanese Blitz: The BOJ surprised by taking the baton from the Fed announcing a huge addition to stimulus. This sent the yen lower against the the dollar, with USD/JPY reaching 111.50. With USD buying, EUR/USD falls.
  2. Weak German retail sales: After some good news from Germany yesterday, a big drop in unemployment, it’s back to gloomy data from the biggest economy in the continent: the volume of sales fell 3.2% in September, much worse than 0.9% expected. This weighs on the euro.
  3. French consumer spending disappoints: The continent’s number 2 economy is also showing signs of weakness with a 0.8% in consumer spending, worse than 0.3% expected.
  4. Euro-zone QE not ruled out: The Austrian central banker, Ewald Nowotny says “never say never” to QE. He is usually in the more hawkish camp in the ECB.
  5. End of month flows: Portfolio adjustments at the end of the week and the end of the month mean scrambles in the last moment, and this could also be having an impact.

EUR/USD dipped just below yesterday’s low and hit 1.2540, just 40 piips above the magical 1.25 line which it hit on October 3rd, which is also 80 cents on USD/EUR.

Can it fall lower? All eyes are now on the euro-zone inflation numbers for October.

See how to trade the CPI with EUR/USD.

EUR/USD Oct. 29 – Sliding from high resistance ahead of the Fed

EUR/USD Oct. 29 – Sliding from high resistance ahead of the Fed

EUR/USD is trading in high range but isn’t able to break higher. Today, all eyes are on the Federal Reserve. Yellen and co. are expected to end QE but leave interest rate hike expectations lower for a long time. Worries about Germany have been sidelined as hard US data hasn’t been impressive of late. Where will

EURUSD Prints Price Action BUY Signal on 4 Hour Chart

EURUSD Prints Price Action BUY Signal on 4 Hour Chart

I’ve been making a better effort to check what’s been going on the 4 hour time frame in these faster paced markets. The EURUSD downward trend seems to have lost some momentum and we are seeing price really ‘jam up’ and congest above a daily support level. The EURUSD was basically in ‘freefall’ for a

EUR/USD Oct. 23 – Bouncing from the lows on German optimism

EUR/USD Oct. 23 – Bouncing from the lows on German optimism

EUR/USD is bouncing from low ground on stronger than expected German PMIs, after falling earlier on weak French PMIs and extending the slide resulting in a resurgence of the greenback. Can this recovery continue? In the US, we have jobless claims, which hit a 14 year high last month, as well as Markit’s manufacturing PMI. Here’s a

EUR/USD Oct. 22 – Loses 1.27 on ECB speculation ahead of US CPI

EUR/USD Oct. 22 – Loses 1.27 on ECB speculation ahead of US CPI

EUR/USD is under pressure and is trading under the 1.27 handle, as speculation about the ECB buying corporate bonds mounts. While there is no decision on the matter, it is clear that Draghi and co. are looking for ways to print more euros. In addition, the pair is pressured by a strengthening dollar, one week ahead of

EUR/USD Oct. 21 – Hits high resistance as dollar sells off

EUR/USD Oct. 21 – Hits high resistance as dollar sells off

EUR/USD is trading on high ground above 1.28 and below the top resistance line of 1.2850. The pair is mostly moving on weakness in the US dollar, which continues to slide despite some hawkish comments from members of the Fed. US data begins coming today with existing home sales. In Europe, the same old worries about growth

Why We Remain Euro Bears; Risk & JPY Next Move – CIBC

Why We Remain Euro Bears; Risk & JPY Next Move – CIBC

EUR/USD had two weeks of rises, in a high volatility environment. Can it continue rising? The team at CIBC remains bearish on the euro. They also offer their opinions on risk and the Japanese yen. Here is their view, courtesy of eFXnews: The following are the weekly outlooks for the EUR and JPY as provided by

EURUSD Higher Highs and Trading Above W1 Support – Looking to Buy

EURUSD Higher Highs and Trading Above W1 Support – Looking to Buy

EURUSD has suffered quite heavy losses in the last few trading months – thanks to the strength gained in the USD. We all know that these trends don’t last forever and the markets can shift from bearish to bullish sentiments overnight. The EURUSD downtrend looks like as it has run out of steam as the

EUR/USD Oct. 16 – Sliding after the mad shoot higher

EUR/USD Oct. 16 – Sliding after the mad shoot higher

EUR/USD is trading in the high range of 1.2750 to 1.28 after an extreme market storm. The weak US retail sales sparked a dollar and stock sell off, sending euro/dollar 200 pips higher before sliding 100 pips and stabilizing only after a long time. The blessed volatility provides opportunities and also risks. Will we see another storm today?

EUR/USD Oct. 15 – About to get busy in the lower range

EUR/USD Oct. 15 – About to get busy in the lower range

EUR/USD is trading in a limited range just under resistance at 1.2660, despite a lot going on in the markets. It managed to stabilize after the falls seen yesterday. Fears of a German recession worsened with yesterday’s data and forecast downgrade. In his first speech today, Draghi did not talk about monetary policy but he speaks