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16 Jan 2015
EUR/USD: EZ CPI may expose sub 1.15 levels - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, the downside in EUR/USD is favored, with a disappointing EZ monthly inflation report later today exposing sub 1.15 levels.
Key Quotes
"The common currency was dragged lower by EUR/CHF that fell from 1.20 to 0.85 in a matter of minutes, with the EUR/USD pair reaching 1.1608. When the dust settled, the pair bounced back to 1.1770, but the movement was short lived, as investors decided to follow SNB lead and also get rid of their euros, sending the pair down to 1.1567."
"Currently trading above the 1.1600 level, the intraday rollercoaster has left short term technical readings a bit distorted, with indicators in extreme oversold levels in the hourly chart. Nevertheless, the downside is still favored, as per the price developing below its 20 SMA. Early Friday, the EZ will release its monthly inflation report, and another disappointing reading there may drag the pair down to sub 1.15 levels."
Key Quotes
"The common currency was dragged lower by EUR/CHF that fell from 1.20 to 0.85 in a matter of minutes, with the EUR/USD pair reaching 1.1608. When the dust settled, the pair bounced back to 1.1770, but the movement was short lived, as investors decided to follow SNB lead and also get rid of their euros, sending the pair down to 1.1567."
"Currently trading above the 1.1600 level, the intraday rollercoaster has left short term technical readings a bit distorted, with indicators in extreme oversold levels in the hourly chart. Nevertheless, the downside is still favored, as per the price developing below its 20 SMA. Early Friday, the EZ will release its monthly inflation report, and another disappointing reading there may drag the pair down to sub 1.15 levels."