The Euro
continues falling today, but at a lower rate as we can see it on the 4 hour
chart below of the EUR/USD. The recent fundamental data out of the United
States has raised the probabilities of an interest rate hike by the Federal
Reserve sooner than anticipated; this has caused the Dollar to gain strength.
On the other hand, the European Central Bank has provided more economic
stimulus to the Eurozone, causing the Euro to weaken. This is why we are seeing
the EUR/USD in a sustained downtrend.
The next
support level for the pair is the 1.3500 from where it may stall or try to bounce
to the upside. There could be a lot of buy orders pending at that area and that
could prevent the pair from going lower. However, if the fundamentals from the
U.S. keep coming out better than expected, then the yield on the U.S.
treasuries may widen further and cause the greenback to gain more strength.
This in return could cause the EUR/USD to break below the 1.3500 level.
Seems to consolidate but who knows does not continue to fall ...
ReplyDeleteYes I think so; EURUSD is stuck in a 100 pip range between 1.35 and 1.36.
ReplyDeletei highly doubt it that it will fall under 1.3500... price can't even break the support on 1.3520
ReplyDeleteI agree with your view.
ReplyDelete