25 Feb 2015
EUR/USD: Yellen was the main event; patience the theme - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD traded quite choppy within a limited range on Tuesday, still unable to set a clear direction.
Key Quotes:
"The main event of the day has been Janet's Yellen testimony before the Congress that initially boosted the greenback after the FED's Chair said that rates could rise at any possible meeting."
"But then he said that the Central Bank will probably change forward guidance before lifting rates, and she reiterated that the FOMC can remain patient for the time being, with a rate hike unlikely at least over the next couple of meetings."
"The greenback reversed course after that, falling sharply against commodity currencies and the yen, while equity markets soared to fresh record highs. In Europe, the EU group finally agreed to accept the list of reforms proposed by Greece, confirming the four-month extension to the bailout program, but the good news failed to support the common currency. Besides, the final revision of European inflation matched expectations, with the January YoY reading confirmed at -0.6%."
"The technical perspective for the pair in the short term, remains neutral-to-bearish, as the 1 hour chart shows that an early attempt of recovery stalled around the 100 SMA, while the technical indicators in the mentioned time frame are now flat around their mid-lines. In the 4 hours chart the price was unable to overcome a bearish 20 SMA, with indicators biased slightly south around their mid-lines."
Key Quotes:
"The main event of the day has been Janet's Yellen testimony before the Congress that initially boosted the greenback after the FED's Chair said that rates could rise at any possible meeting."
"But then he said that the Central Bank will probably change forward guidance before lifting rates, and she reiterated that the FOMC can remain patient for the time being, with a rate hike unlikely at least over the next couple of meetings."
"The greenback reversed course after that, falling sharply against commodity currencies and the yen, while equity markets soared to fresh record highs. In Europe, the EU group finally agreed to accept the list of reforms proposed by Greece, confirming the four-month extension to the bailout program, but the good news failed to support the common currency. Besides, the final revision of European inflation matched expectations, with the January YoY reading confirmed at -0.6%."
"The technical perspective for the pair in the short term, remains neutral-to-bearish, as the 1 hour chart shows that an early attempt of recovery stalled around the 100 SMA, while the technical indicators in the mentioned time frame are now flat around their mid-lines. In the 4 hours chart the price was unable to overcome a bearish 20 SMA, with indicators biased slightly south around their mid-lines."