The tops have been faded and the pair is now returning back to the initial levels located at 1.1335/40.
We may see new lows in the coming days/weeks . The ascending trend line has broken and the pair gave the first test on the bottom channel for the sellers to get in. This seems to be the fifth wave which is pointing to a deeper correction level and we are looking at 1.08394 levels & this is exactly in line with the ascending line drawn from 31st March 2015. We are now looking for opportunities to sell the pair and retracements are considered to be our choicest point of entries.
We see that markets are trembling ahead of the Fed, specially the US dollar. Past Friday the markets left the USD traders in a cloud not knowing of the direction. This has brought uncertainty concerns among the investors and has put them on sidelines. We received a round of mixed data from the Chinese over the weekend, while the production and Fixed investment figures for August came in below than expected. The only positive news was the Retail figures which was slightly better.
Thanks for sharing your analysis, I’m sure the newbie traders in here will appreciate the combination of fundamentals and technicals. Hopefully you can be able to make enough posts and share charts of these pairs you’re looking at, too!
according to Euro was being benifited by the looming uncertainties over Fed meet. people were getting out of their major trades weakining dollar. moreover, it also got supported by the positive numbers from euro zone. however, if we see a long term outlook, Euro is over valued. 1.13 level is not the levels for it. for now also, territory above 1.13 level is acting as the resistance. it is bouncing back from the territory now and then. if Fed fails to raise the interest rates we can see the short term rally. moreover, the euro zone inflation is revised lower which is surely effecting the pair.we are hoping for a correction neverthless, no one exactly knows what Fed is actually gonna do in the meeting but there are chances it wont hike the interest rates given the global economic outlook and inflation concerns.
Yes the Fed meeting is uncertain so we do not really know what is going to happen as as now we can just wait till the picture becomes clear to us. I also think that the current valuations of the Euro are on the higher side and we should be able to see corrections soon
The EurUSd is trading near its 1.13171 resistance level, ahead of the FOMC. The current patterns suggest an up trend towards 1.13893, with 1.13436 as a primary objective, should the parity breaks 1.1317. Such a movement will reject the down trend induced by the evening star two days ago.
Failing to breakout 1.13171, will lead the parity to re-test 1.12375.
The parity was trading around 1.12889 at the opening, above of its daily Pivot Point, which is around 1.12745. The daily support levels are around 1.12285 and 1.11682. The daily resistance levels are around 1.13348 and 1.13808.
Any eventual rates hike will render deposits in USD and ON RRPs more desirable, and reflect an stronger American economy. Such a move may be hindered by the macroeconomic environment, and after a bad jobs report, postponing it to November.
I’m with you on this one. Looks like traders are easing out of their current dollar positions to reduce their exposure ahead of the event. It looks like the odds favor no hike this time but the Fed might provide some forward guidance on when they might make adjustments, which might still be enough to keep the dollar supported in the long term. Look out for any changes in their growth and inflation estimates, too!
The EurUSd is trading near its 1.13171 resistance level, ahead of the FOMC. The current patterns suggest an up trend towards 1.13893, with 1.13436 as a primary objective, should the parity breaks 1.1317. Such a movement will reject the down trend induced by the evening star two days ago.
Failing to breakout 1.13171, will lead the parity to re-test 1.12375.
The parity was trading around 1.12889 at the opening, above of its daily Pivot Point, which is around 1.12745. The daily support levels are around 1.12285 and 1.11682. The daily resistance levels are around 1.13348 and 1.13808.
Any eventual rates hike will render deposits in USD and ON RRPs more desirable, and reflect an stronger American economy. Such a move may be hindered by the macroeconomic environment, and after a bad jobs report, postponing it to November.
