4 Aug 2015
Lockhart was the trigger market wanted - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the market was looking for a trigger, and finally got it in the American afternoon, when Atlanta's FED President Dennis Lockhart pledged for a September lift off in rates, unless "significant deterioration" in data occur.
Key Quotes:
"The EUR/USD pair traded choppy within range for most of the day, contained by the 1.1000 level, and with the dollar under pressure due to RBA's decision to leave rates on hold. When it comes to the macroeconomic picture, the release of the EU PPI figures for June did little to impulse the pair, as monthly basis, the index fell 0.1% compared to previous 0.0%. Yearly basis, it met expectations falling 2.2% compared to May reading of -2.0%. In the US, Factory Orders surged in June, driven by a big gain in commercial airplanes, up 1.8% in the month, but economic optimism slipped 2.5% in August, posting a reading of 46.9, below the past 12-month average.
The EUR/USD pair broke below the past week low of 1.0892, and maintains a strong bearish momentum in the short term by the end of the US session, with the 1 hour chart showing that the technical indicators head sharply lower below their mid-lines, and that the price has accelerated well below it moving averages, having been unable to advance beyond the 100 SMA.
In the 4 hours chart the technical picture is also strong bearish, albeit the pair may hover around the current level and even bounce some before extending its decline. A break below 1.0860 should see the pair extending its decline this Wednesday towards the 1.0800/20 price zone, where buying interest has been containing the downside since late May."
Key Quotes:
"The EUR/USD pair traded choppy within range for most of the day, contained by the 1.1000 level, and with the dollar under pressure due to RBA's decision to leave rates on hold. When it comes to the macroeconomic picture, the release of the EU PPI figures for June did little to impulse the pair, as monthly basis, the index fell 0.1% compared to previous 0.0%. Yearly basis, it met expectations falling 2.2% compared to May reading of -2.0%. In the US, Factory Orders surged in June, driven by a big gain in commercial airplanes, up 1.8% in the month, but economic optimism slipped 2.5% in August, posting a reading of 46.9, below the past 12-month average.
The EUR/USD pair broke below the past week low of 1.0892, and maintains a strong bearish momentum in the short term by the end of the US session, with the 1 hour chart showing that the technical indicators head sharply lower below their mid-lines, and that the price has accelerated well below it moving averages, having been unable to advance beyond the 100 SMA.
In the 4 hours chart the technical picture is also strong bearish, albeit the pair may hover around the current level and even bounce some before extending its decline. A break below 1.0860 should see the pair extending its decline this Wednesday towards the 1.0800/20 price zone, where buying interest has been containing the downside since late May."