US Economy Rebounds in Second Quarter – Greenback Steady

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The US GDP data beat estimates giving boost to the US Dollar which has started to gain strength, rallying against most of its peers. The GBPUSD, EURUSD, NZDUSD have been flirting with 3 month lows riding on the Greenback’s strength. The EURUSD continues to move in a tight range between 1.3220 and 1.31565. The down gap that was formed last week is yet to be filled. With the lack of any major market moving events from the North American session, the EURUSD is expected to end the week within this range high and low.

As today marks the last trading day of the month, we can expect to see some wide ranging profit booking taking place across the majors.

Guest post by John Benjamin at Orbex

Fundamentals Recap – August 28th, 2014

  • Second quarter preliminary GDP in the US expanded at 4.2%, above median consensus of 3.9% and up from 4%. Greenback continues to gain ground against most of its peers.
  • Russia-Ukraine turmoil continues to dampen spirits as investors turn to safe haven currencies in a risk-off sentiment.
  • Pending home sales data m/m expands 3.3%, above median estimates of 0.6%

Fundamentals – August 29th, 2014

  • Japanese inflation unchanged at 2.7% while unemployment ticks higher to 3.8%
  • Eurozone Flash CPI estimates y/y at 0.3% in line with median estimates and a decline from 0.4% previous reading
  • Canadian GDP due to be released at 1530 (GMT+3) with median estimates calling for a decline in GDP to 0.2%, down from 0.4% the previous month
  • US Chicago PMI to be released at 1645 (GMT+3) with median estimates calling for an increase to 58.6, up from 52.6 previously

EURUSD – Daily Pivots

R3 1.32756
R2 1.32477
R1 1.32144
Pivot 1.31865
S1 1.31531
S2 1.31253
S3 1.30919

EUR USD Technical analysis after US gdp August September 2014

We notice a strong confluence of the Daily Support 1 and the Monthly Support2 at 1.31531 and 1.31513. Any downside moves are likely to struggle at this level before we see any further breakdown.

EURUSD – Caught between the range for most of this week

EURUSD – Technical Signals (Daily)

MACD (12,26,9) Oversold
RSI (14) Oversold
Stochastics (14,3,3) Oversold
EMA (200) Price Below EMA
EMA (100 Price Below EMA
EMA (200 – 100) Bearish Crossover, with 100 EMA below 200 EMA

 

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About Author

John is a market analyst for Orbex Ltd. and is a forex and equities trader having been involved in trading since late 2009. John makes use of a mix of technical and fundamental analysis and inter-market relationships. The analysis present here is a mix of intra-day analysis while considering the long term outlook of the markets as well. For any comments or questions, John can be reached at [email protected]

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