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19 May 2015
EUR/USD might push back up towards 1.1242-1.1293 – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the EUR/USD decline suggests that markets have already priced in the front loading of ECB QE, and bids around 1.11-1.1150 might push the pair back up towards 1.1242-1.1293.
Key Quotes
“On Technical grounds, the EUR/USD is set to finish today well below 1.1293 (23.6% fib retracement of 1.3991-1.0461). As mentioned on numerous occasions, a daily close below 1.1293 would be bearish. However, the sell-off today was driven by ECB QE front loading news. Hence, a daily close below 1.1293 may prove to be equally short lived.”
“The pair could rise back to 1.1242 (23.6% Fib retracement of 1.0520-1.1464), as it is likely to find fresh bids above 1.1104 (38.2% Fib retracement of 1.0520-1.1464). Only a fresh attempt at 1.1293 and a rejection could mean the near-term top is made at 1.1467.”
“On the downside, a break below 1.1040 could see the pair extend losses to 1.1050 (March. 26 high).”
“However, as said earlier, the markets seem to have priced-in the front loading of QE, hence, fresh bids in the range of 1.11-1.1150 could push the pair back to 1.1242-1.1293 levels.”
Key Quotes
“On Technical grounds, the EUR/USD is set to finish today well below 1.1293 (23.6% fib retracement of 1.3991-1.0461). As mentioned on numerous occasions, a daily close below 1.1293 would be bearish. However, the sell-off today was driven by ECB QE front loading news. Hence, a daily close below 1.1293 may prove to be equally short lived.”
“The pair could rise back to 1.1242 (23.6% Fib retracement of 1.0520-1.1464), as it is likely to find fresh bids above 1.1104 (38.2% Fib retracement of 1.0520-1.1464). Only a fresh attempt at 1.1293 and a rejection could mean the near-term top is made at 1.1467.”
“On the downside, a break below 1.1040 could see the pair extend losses to 1.1050 (March. 26 high).”
“However, as said earlier, the markets seem to have priced-in the front loading of QE, hence, fresh bids in the range of 1.11-1.1150 could push the pair back to 1.1242-1.1293 levels.”