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20 Apr 2015
EUR/USD: Break above 1.0838 should lead to further gains - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, technicals in EUR/USD suggest that a break above 1.0838 immediate resistance should lead to further advances.
Key Quotes
"The wires have been hot over the weekend, with news coming from all fronts. First, Mario Draghi, ECB's head, said that "It is pointless to go short on the euro," referring to the irreversibility of the European single currency. Whilst his words were unintended to speculators, it may have some effects Sunday opening, particularly considering the EUR has been refusing to give up."
"Secondly, Greek FM Varoufakis in an interview, indicated that Greek authorities could default if the country's creditors retain a tough stance in negotiations and leave authorities with no other choice, which may balance Draghi's words. Finally, the Chinese Central Bank cut the reserve requirement ratio for all banks by 100 basis points on Sunday, in an attempt to boost bank lending and combat slowing growth."
"The EUR/USD pair recovered some ground last week, surging up to 1.0847 on Friday, amid generally weak US macroeconomic data. The technical picture shows that the price stalled around the 61.8% retracement of the latest daily decline measured between 1.0134 and 1.0519, last week low, at 1.0838, becoming the immediate resistance level."
"In the 4 hours chart, the 20 SMA advanced below the current price and stands around 1.0700, whilst the technical indicators hold in positive territory, suggesting a break above the mentioned resistance should lead to further advances. The 50% retracement of the same rally stands at 1.0775, with a break below denying the upside in the short term."
Key Quotes
"The wires have been hot over the weekend, with news coming from all fronts. First, Mario Draghi, ECB's head, said that "It is pointless to go short on the euro," referring to the irreversibility of the European single currency. Whilst his words were unintended to speculators, it may have some effects Sunday opening, particularly considering the EUR has been refusing to give up."
"Secondly, Greek FM Varoufakis in an interview, indicated that Greek authorities could default if the country's creditors retain a tough stance in negotiations and leave authorities with no other choice, which may balance Draghi's words. Finally, the Chinese Central Bank cut the reserve requirement ratio for all banks by 100 basis points on Sunday, in an attempt to boost bank lending and combat slowing growth."
"The EUR/USD pair recovered some ground last week, surging up to 1.0847 on Friday, amid generally weak US macroeconomic data. The technical picture shows that the price stalled around the 61.8% retracement of the latest daily decline measured between 1.0134 and 1.0519, last week low, at 1.0838, becoming the immediate resistance level."
"In the 4 hours chart, the 20 SMA advanced below the current price and stands around 1.0700, whilst the technical indicators hold in positive territory, suggesting a break above the mentioned resistance should lead to further advances. The 50% retracement of the same rally stands at 1.0775, with a break below denying the upside in the short term."