From the technical analysis perspective the price is currently trading around the 0.99900 price area just above the 61.8% of the fibonacci retracement level. The US inflation rate is expected to affect the fiber chart with the market expecting a decrease on the figure (8%). This publication will possibly create volatility and might give the…
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With no signs of reversal or corrections the most plausible scenario would be a continuation of the current trend at least in the short term. This is always dependent on the economic news related to the US Dollar which there is a lot coming this week. We can easily notice areas of possible resistance on…
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From the technical analysis perspective the price is currently trading around the 0.98 price area which is a very strong point of resistance since it consists of the 50% of the fibonacci retracement level, the daily trendline and the 50 day moving average. Given that the Stochastic indicator is also signaling an overbought level and…
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Based on technical analysis the price is currently trading around the 1.24 price area which is a very strong point of resistance since it consists of the 61.8% of the fibonacci retracement level, the daily trendline which is valid since mid August and the psychological resistance of round numbers. Given this is a major resistance…
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TA would traditionally suggest an ongoing movement lower with there being no overbought signals from either the slow stochastic or Bollinger Bands and a fairly clear rejection around $1.15. The medium-term target might be 27 September’s closing low slightly above $1.07. However, the liveliness and duration of the dollar’s uptrend so far this year might…
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The magnitude of the current bounce suggests considerable institutional involvement, which is practically unknown in the week before a major event such as the NFP. That suggests in turn that the reaction to the job report could also be extremely strong, so the most conventional wisdom of waiting for the dust to settle after a…
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However, sentiment on monetary policy and economic conditions has changed rapidly over the last few days, so it makes sense in the context not to rely too much on the chart. In the unlikely event of a significant revision upward in American GDP for the second quarter, the price might push sharply lower in the…
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The hawkish scenario of a triple hike on Wednesday seems to be almost universally priced in, so a case of ‘buy the rumour, sell the fact’ might apply for the dollar that evening and the euro might make at least a small bounce. As noted above, though, it’s the press conference that seems to be…
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The situation on the chart has followed these changing fundamentals quite closely, with the euro making gains over the last week to a high of around a month, breaking clearly above $1.01 and the 50-day moving average from Bands. There seems to be more scope for the common currency to continue upward and possibly test…
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On the chart, the 50% weekly Fibonacci retracement is still the main technical reference with there being clear demand below that area. 67c seems to be a firm support for now and will probably remain so unless there’s a significant surprise from American inflation or the Fed’s meeting. To the upside, the 50 SMA from…
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