6 Aug 2015
EUR/USD: risks mounting to the downside - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair ended the day with some limited gains above the 1.0900 level, having traded within its latest range.
Key Quotes:
"The dollar was under pressure during the previous Asian session amid the soft macroeconomic data released on Wednesday, sending the pair up to 1.0947, from where the pair retreated after meeting selling interest around the critical resistance level. The pair traded choppy afterwards falling down to 1.0872, from where the pair bounced with Wall Street opening. In the US, employment data came out mixed, as the US Challenger Job Cuts report showed that monthly job cuts reached its highest level since 2011, as employers announced plans to shed 105,696 workers in July. Weekly jobless claims however, came out better than expected, printing 270K in the week ending July 31 against a forecast of 277K, but above the previous week reading of 267K."
"The dollar maintained a tepid tone during all of the American session, with majors ranging as investors switched to wait-and-see mode ahead of the release of the US Nonfarm Payroll report early Friday."
"Technically, the 1 hour chart shows that the pair is unable to advance beyond its 100 SMA, whilst the technical indicators have turned lower around their mid-lines, lacking bearish strength, but at least suggesting the upside will remain limited. In the 4 hours chart the price is hovering around a bearish 20 SMA, the Momentum indicator heads south below its 100 level, and the RSI indicator hovers around 48, supporting the shorter term view, and maintaining the risk towards the downside."
Key Quotes:
"The dollar was under pressure during the previous Asian session amid the soft macroeconomic data released on Wednesday, sending the pair up to 1.0947, from where the pair retreated after meeting selling interest around the critical resistance level. The pair traded choppy afterwards falling down to 1.0872, from where the pair bounced with Wall Street opening. In the US, employment data came out mixed, as the US Challenger Job Cuts report showed that monthly job cuts reached its highest level since 2011, as employers announced plans to shed 105,696 workers in July. Weekly jobless claims however, came out better than expected, printing 270K in the week ending July 31 against a forecast of 277K, but above the previous week reading of 267K."
"The dollar maintained a tepid tone during all of the American session, with majors ranging as investors switched to wait-and-see mode ahead of the release of the US Nonfarm Payroll report early Friday."
"Technically, the 1 hour chart shows that the pair is unable to advance beyond its 100 SMA, whilst the technical indicators have turned lower around their mid-lines, lacking bearish strength, but at least suggesting the upside will remain limited. In the 4 hours chart the price is hovering around a bearish 20 SMA, the Momentum indicator heads south below its 100 level, and the RSI indicator hovers around 48, supporting the shorter term view, and maintaining the risk towards the downside."