4 Aug 2015
EUR/USD print new lows, en-route to 1.09
FXStreet (Bali) - EUR/USD remains offered in Asian trade, having broken through Monday's low at 1.0940, to print a new 2-day low at 1.0932, as the US Dollar strengthens across the board, except against the Yen, that proves more resilient.
USD strengthens, shrugs off poor fundamentals
The USD appreciation comes on the back of a 3-month reading in the ISM manufacturing (52.7 in July) on Monday, whilst the US Markit series came at 53.8. Last Friday, we also saw a very disappointing employment cost index in the US at 0.2% vs 0.6% exp, initially causing an overdone fall in the US Dollar, which was clearly perceived as an opportunity to reinstate USD longs, even as the probability of a Fed rate hike in Sept stands at virtually 0% according to the Fed fund rates CME index. Whether or not that changes on this Friday's US Non-Farm Payrolls, remains to be seen.
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EUR/USD technicals
As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical picture is favoring another leg lower for the upcoming session, as the 1 hour chart shows that the price remained contained below its 100 SMA in its attempts to advance, while the 20 SMA heads lower above the current price and the technical indicators remain below their mid-lines, although lacking directional strength albeit the restricted intraday range."
"In the 4 hours chart, the price is below a bearish 20 SMA, whilst the technical indicators diverge from each other, but in neutral territory. At this point the price needs to break below the 1.0920 level to be able to extend its losses towards the 1.0840/60 region, while approaches to 1.1000 will likely continue to be seen as selling opportunities", Valeria added.
USD strengthens, shrugs off poor fundamentals
The USD appreciation comes on the back of a 3-month reading in the ISM manufacturing (52.7 in July) on Monday, whilst the US Markit series came at 53.8. Last Friday, we also saw a very disappointing employment cost index in the US at 0.2% vs 0.6% exp, initially causing an overdone fall in the US Dollar, which was clearly perceived as an opportunity to reinstate USD longs, even as the probability of a Fed rate hike in Sept stands at virtually 0% according to the Fed fund rates CME index. Whether or not that changes on this Friday's US Non-Farm Payrolls, remains to be seen.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
EUR/USD technicals
As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical picture is favoring another leg lower for the upcoming session, as the 1 hour chart shows that the price remained contained below its 100 SMA in its attempts to advance, while the 20 SMA heads lower above the current price and the technical indicators remain below their mid-lines, although lacking directional strength albeit the restricted intraday range."
"In the 4 hours chart, the price is below a bearish 20 SMA, whilst the technical indicators diverge from each other, but in neutral territory. At this point the price needs to break below the 1.0920 level to be able to extend its losses towards the 1.0840/60 region, while approaches to 1.1000 will likely continue to be seen as selling opportunities", Valeria added.