Enjoyed the rally? Probably, it’s not the end

By GG Analyst in Reviews 0 Comment

EUR/USD

Did you like it? Several factors coincided at once to provoke heavy selling in the dollar, which only in EURUSD resulted in a move of 270pips from the daily low to the daily high. Moreover, having risen from 1.3090 to 1.33 for less than five hours after Draghi’s speech, at night the single currency was consolidating at 1.3340, it means traders have gathered their profits and do not hurry to purchase dollars. Let’s look into the reasons. First of all, during the day the US currency was gradually weakening as a result of the preceding poor statistics, which reduced the likelihood more…

Is USD up for a reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

On Tuesday the single currency stalled on the way to 1.31. Thanks to other instruments  the US currency strengthened its positions a little bit. Anyway, the dollar index (DXY) is moving away from its extremums, which it reached at the end of the previous month. Yesterday it was by 2.5% below the highs, hit on May 23. We have more and more doubts that the dollar will resume growing in the near future. For about a year the index has been in the uptrend, yet the latter has been running in waves. We should take into consideration that another tide of more…

USD suffered because of PMI

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar suffered because of the poor statistics. First of all, Manufacturing PMI for May was significantly revised up. In Italy the index made 47.3 against 45.5 a month ago. In France it was raised from the same 45.5 to 46.4. In Germany – from 49.0 to 49.4. Manufacturing PMI for the euro zone totaled 48.3 against the first estimate of 47.8. Though the index is still below 50, reflecting a decline, it is possible to notice the general upward trend, lasting for about a year already. By contrast with it the market was surprised by a sharp plunge of more…

Bulls seek to close the month above 1.30 in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Instead of the expected growth the US dollar demonstrated a decline yesterday. It’s remarkable that EURUSD managed to get above 1.30. If the pair consolidates at this high, by the beginning of the week and the month we will get the rate above the important psychological level and above the 200-day MA. This disposition can arouse a considerable purchase interest. We still have doubts about the further growth, having in mind the US and EU fundamental indicators, but are less sure that this scenario will develop in the near future. As this week has showed, the US dollar does not necessarily more…

Rebellion of EU currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The sudden and ungrounded surge of European currencies (EUR, GBP, CHF) against the dollar should be treated as nothing more than ousting of bears from the market. It can be also called the last-ditch fight of the bulls, who summoned all strength to reverse the situation. But as practice shows, very often yesterday’s bulls turn out to be tomorrow’s bears, so these are the same big players, gaining liquidity for further attacks. Why are we so sure? The thing is that there was no reason for purchasing the euro. The only important event in Europe yesterday was the release of German more…