Euro is taking a beating after the Draghi speech when it became clear that the ECB will continue its easy monetary policy. The pair went from 1.0872 to current market price of 1.0600, which is also the lowest point since the event.
The dollar rebounded against a basket of currencies on Thursday after the European Central Bank has stated that they intend to extend their asset purchase program by another nine months, while the US labor market data fell short of the forecast. The EUR/USD fell by 0.43% to 1.0712, falling from session highs at 1.0873.
Following the announcement by ECB the single currency recorded its biggest drop against the dollar since June. As expected the bank is extending the program of quantitative easing, but surprised markets with lower monthly volume of purchases. The EUR/USD pair wiped out 139 pips to 1.0612. The price went below the moving averages, while RSI is losing ground. Attitudes remain negative and break of 1.0580 will contribute to further decline.
EUR/USD is trading lower in today's session after yesterday's attempt to push higher. The speech by ECB President Mario Draghi was the catalyst that drove the price down. Currently, EUR/USD is trading at 1.0538.
Have in mind that the FED meeting on 13-14 Dec will decide whether or not the rates are going up. This would be one of the most anticipated events of the year. Until then the US dollar dominance is expected to continue.
USD/CAD on the other hand kept losing gains today as the pair reached a low of 1.3152. Bearish camp has taken control and now next target is 1.31. Main trend on the short term remains bearish, on the long term the latest move is seen as a correction to the upward trend.
The correlation with the EUR/USD is in divergence as we're seeing a steady depreciation in both pairs.
The EUR/USD pair has turned to bearish mode and is very close to the yearly low pinned this December at 1.0504. The current market price is 1.0551 and the risk is clearly facing the downside, with a break below 1.0500.
One thing i have learnt in forex over time is not to try to predict were price will go, i just trade what i see on a daily basis....i have disabled my MT4 news feed and i dont pay attention to Inflection points, Parity, 00 levels etc, I JUST TRADE WHAT I SEE
Kingace posted: No single indicator, not even a Trendline
All that stuff is just a short cut representation ,its not a true picture of what is really happening behind the scenes , anyone who tells you any different is deluded , although saying that it does give you a clue as to where retail traders are sitting , that's why you get knocked out so easily.
On the last Friday’s session the EURUSD fell again but this time with a narrow range and closed near the low of the day, also managing to close below Thursday’s low, which suggests a strong bearish momentum.
The currency pair is trading below the 10, 50 and the 200-day moving averages that should act as dynamic resistances.
The key levels to watch are: a daily resistance at 1.0819 (resistance), a Fibonacci extension at 1.0666 (resistance), the 10-day moving average at 1.0650, a daily resistance at 1.0622, (support) and the all-time low at 1.0462.
EUR/USD has formed an inverted hammer candlestick on the weekly time-frame above the support at 1.0500 after its move to the downside last week. A bounce to the upside is possible, but it's unlikely that will occur before the FED interest rate decision announcement later this week.
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