Unannounced intervention of RBNZ

By GG Analyst in Reviews 0 Comment

EUR/USD

The end of the previous week and the beginning of this eventful week passed under the banner of USD’s growth against EUR. Against our expectations of rebalancing, the pair hit fresh multi-year lows. Now trading is held near 1.2675, which hasn’t been seen since November 2012. However, taking into account that then the low of 1.2662 didn’t exist for long, the current levels can be confidently called the lowest ones since September 2012. This week the major risk for the pair is posed by the ECB’s regular meeting and the following press-conference and also by the US employment statistics for September. more…

USD may depreciate on poor GDP data

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had we written about the threat to the local lows in the pair yesterday when the pair was pushed below 1.27. The major part of this decline took place against liquidation of stops after hitting the previous lows. Formally, this selling occurred when Draghi repeated that the ECB was ready to continue its unconventional policy to avoid inflation risks. The pair came to its senses only at 1.27. Here it got support and now makes new attempts to consolidate. There are no reasons for growth as the eurozone keeps releasing poor news while the US labour market, according to weekly more…

EURUSD is at its 14-month lows

By GG Analyst in Reviews 0 Comment

EUR/USD

Having broken through 1.2840, EURUSD quickly fell down to 1.2770. The main reason for this movement is triggering of limit orders on reaching new local lows. As a result, the pair is now trading very closely to the lows of the previous year (1.2744). The next accumulation of stops can be near 1.2650. The further target of decline may be set at 1.20, which had been hit in 2012 in the heat of the EU sovereign debt crisis before Draghi made his famous ‘whatever it takes’ speech. Then the low rate was explained by the fears of the EU disintegration with more…

USD doesn’t hurry to give in

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro tried, but failed to attack the dollar yesterday. The relatively good PMI stats for Germany and France didn’t help the eurozone to surpass expectations in all indicators. Now the market has a great set of facts and statistics on big countries at its disposal, though special attention should be paid to small ones. Now Germany is the one to carry the overall performance of the eurozone.  The Services PMI has grown to 55.4 in September instead of the expected slowdown from 54.9 to 54.6. In its turn it helped the Composite PMI grow against the rate of the previous more…

Technical analysis highlights a possibility of short-term correction

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is no longer as sensitive to Draghi’s comments as before. Yesterday he expressed readiness to expand incentives, including non-traditional measures. However, the markets don’t take these words as a threat now as Draghi’s under increasing pressure of Bundesbank and the central banks of other core countries. Thus, the reaction to Draghi’s rhetoric was quickly exhausted. The pair dropped down to 1.2816 (a new high for more than a year). The pair remains oversold. But meanwhile its current position is explained by fundamental factors. So short-term traders can only rely on a quick pullback within the range of the more…