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10 Sep 2015
EUR/USD 4hr remains bullish; 1.1331 targeted - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that dollar bulls finally gave up on the American session, after worse-than-expected US data affected investors' sentiment towards a rate hike in the country next week.
Key Quotes:
"The EUR/USD pair flirted with the 1.1300 level, as in the US, wholesale inventories decreased by 0.1%, while wholesale sales dropped 0.3% in July. Also, import prices declined 1.8% in August following a 0.9% drop the previous month, mostly due to lower fuel prices. Prices exports also fell in by 1.4% a 0.4% decline in the previous month. Weekly unemployment claims edged at 275K, as expected. The market seems to have overreacted to this minor reports, but is because the uncertainty over what the FED will do next week, which is driven the market. US stocks surged, despite most European and Asian indexes closed in the red, also weighing on the USD.
The EUR/USD pair ends the day around the 1.1280 level, the 61.8% retracement of the latest bullish run up to 1.1713, and the 1 hour chart shows that the technical indicators are giving signs of exhaustion in overbought territory, whilst the price has managed to advance well above its moving averages. In the 4 hours chart, the technical indicators have bounced from their mid-lines and maintain their bullish slopes, whilst the 20 SMA heads slightly higher around the 1.1190 level. September high at 1.1331 is now the immediate resistance, followed by the 50% retracement of the same rally at 1.1365."
Key Quotes:
"The EUR/USD pair flirted with the 1.1300 level, as in the US, wholesale inventories decreased by 0.1%, while wholesale sales dropped 0.3% in July. Also, import prices declined 1.8% in August following a 0.9% drop the previous month, mostly due to lower fuel prices. Prices exports also fell in by 1.4% a 0.4% decline in the previous month. Weekly unemployment claims edged at 275K, as expected. The market seems to have overreacted to this minor reports, but is because the uncertainty over what the FED will do next week, which is driven the market. US stocks surged, despite most European and Asian indexes closed in the red, also weighing on the USD.
The EUR/USD pair ends the day around the 1.1280 level, the 61.8% retracement of the latest bullish run up to 1.1713, and the 1 hour chart shows that the technical indicators are giving signs of exhaustion in overbought territory, whilst the price has managed to advance well above its moving averages. In the 4 hours chart, the technical indicators have bounced from their mid-lines and maintain their bullish slopes, whilst the 20 SMA heads slightly higher around the 1.1190 level. September high at 1.1331 is now the immediate resistance, followed by the 50% retracement of the same rally at 1.1365."