This happened even despite a clearly-hawkish outlay from Chair Powell at the press conference. It was just a week ago that we had the most recent FOMC rate decision and that response has been entirely erased from currency markets with the USD erasing all of those Fed-fueled gains and then some. This is all very tenuous at the moment and that’s largely as a result of the drivers in the equation. And that’s started to show, although EUR/USD bulls haven’t been able to get a significant run above parity yet, there’s been a building support case and the door may be open for more if EUR/USD can provoke another bullish breakout. The single currency was battered and beaten over the past nine months and as I started looking at in October, the pain was starting to recede and the door was opening into a deeper pullback. The bigger question at least from my vantage point, is whether a stronger recovery can show in the Euro. ![]() ![]() There’s also a batch of levels just below that swing and this could keep the door open for a support bounce ahead of tomorrow’s release of CPI data. Sellers pushed down to create a fresh monthly low in the currency but soon found support at the same level that was in-play a couple of weeks ago, functioning as a target for a double top formation at 109.62. The bullish trend in the USD took another hit yesterday after a support bounce fell flat.
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