Open Live Account
Try Free Demo
A first bunch of strong US data boosted the Dollar on Wednesday, thus sending EUR/USD down to a 7-month low of 1.0565. However, later the pair rebounded to close the session somewhat above 1.0620.
S&P500 has recovered very sharply following a bounce from 1997 at the start of last week where we labeled end of a three wave decline. It was a corrective move in wave 4) that sent price up into wave 5) which will be targeting new highs.
EUR/USD Current rebound after the new low at 1.0564 should be considered corrective, preceding another dip towards 1.0520. Crucial resistance lies at 1.0690.
The Euro fell sharply yesterday, after recovery rally was capped at 1.0690, initial resistance zone, daily 10SMA 4-hour Ichimoku cloud base and subsequent weakness dipped to fresh 7-month low at 1.0564. Bears dominate on all timeframes, favoring final push towards initial 1.0519 support.
It might be a data-void session and investors in the US are away for Thanksgiving holiday, but European stocks are again in a rally mode, following on from yesterday's strong gains. Evidently, traders are speculating that a beefed-up version of ECB QE is forthcoming in a week's time.
Understandably, it has been a very slow day in FX markets due to the Thanksgiving holiday in the US and the lack of any major economic data elsewhere. That being said, there have been sharp moves in some selected markets such as the Turkish Lira.
EURUSD consolidates with corrective risk building up following a halt in its broader weakness on Wednesday. This is coming on the back of its long-tailed candle formation at the end of Wednesday trading session. This development suggests a temporary bottom may be in place.
The EURUSD didn't make significant movement yesterday. The bias remains neutral in nearest term. Immediate resistance remains around 1.0640. A clear break above that area could trigger further bullish pressure testing the trend line resistance and 1.0700 region.
THE EURO was slightly down today. Sentiment on the euro has remained fraile since European Central Bank President Mario Draghi said last Friday that the bank is ready to act quickly to boost inflation in the euro zone.
The options markets are signaling a 70% chance of Euro (1.0611) hitting the levels of 1.046 by the year end. The expectations from the ECB chairman are high and a lot of easing or rate cut is hoped for in the 3rd December meeting.
Yesterday, the dollar and sterling reversed Tuesday's risk-off losses. The trade-weighted dollar (DXY) even traded briefly north of the 100 mark. At the same time, the euro was hammered by renewed market speculation on aggressive ECB easing next week.
With the exception of the Australian dollar, trading volumes were ridiculously small in the Asian session as traders anticipated today’s Thanksgiving holidays. EUR/USD traded within a 10 pips range between 1.0615 and 1.0625. Similarly, GBP/USD traded sideways between 1.5115 and 1.5131. Moreover, the calendar is pretty light today.
The U.S. dollar advanced for a second straight session on Thursday in a calm trading due to the Thanksgiving holiday, while the euro remained under pressure. The dollar gained to trade around 99.90 from the session’s opening at 99.77, according to the dollar index.
The euro fell toward the weakest in seven months against the dollar and yen as investors speculated the European Central Bank will expand stimulus when it meets next week.
Speculation of further easing from the ECB next week was keeping pressure on the EUR currency as well as bond yields. Strategists were gaining confidence that ECB would exceed expectations for easing on Dec. 3rd with forecasters cutting year-end and 1Q euro estimates.
The Petrobras corruption scandal continues to make headlines as the investigation continues. More heads will roll. Dilma Rousseff took another hit yesterday as the police arrested Delcidio do Amaral one of Rousseff's last strong supporters.
As expected, EUR/USD is drifting in light trade on Thursday, as US markets are closed for the Thanksgiving holiday. In the European session, the euro is trading just above the 1.06 line, as the currency continues to struggle at its lowest levels since April.
U.S markets are closed today for Thanksgiving and will shut early tomorrow. Despite the shortened trading week, dealers and investors have had a plethora of U.S data to consider that could convince an undecided Fed member to shift allegiance. Yesterday's U.S durable goods data was better than expected (+0.5% vs.
US Crude is quiet on Thursday, after showing strong volatility a day earlier. In the European session, oil is trading at $42.91 a barrel. US markets are closed for Thanksgiving, so we can expect crude to continue to have an uneventful day.
Precious-Gold inched up on Wednesday on geopolitical tensions after Turkey said it show down a Russian jet, while the retreat in the dollar eased pressure on commodities.
Trade via many state-of-the-art platforms.
Platforms for mobile devices including iPhone, iPad, and Android, AJAJ FX MT4.
Download Industry leading MetaTrader 4, AJAJ FX MT4.
Accounts starting with only USD $5 + Free demo accounts.
Start trading in less than 5 minutes with easy account opening process.
Trade forex, oil/gas, metals and commodities. Trade 30+ currency pairs.
Live tradable prices - Buy long / Sell short all products in real time.
Hedge is allowed. No commissions on any account or trade at all.
Risk Warning : Forex and CFDs are leveraged products and involves a high level of risk. It is possible to lose all your capital. Therefore, investing such money that you can not afford to lose, should not be your decision. These products may not be suitable for everyone and you should ensure that you understand the risk involved. You should ensure you understand all of the risks and seek independent advice if necessary.
Copyright © 2015 - AJAJ Group