6 May 2015
EUR/USD: Flirting with daily highs at key levels - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that it was a combination of yet another round of weak US data and positive headlines on Greece which sent the EUR/USD pair to levels not seen since late February in the 1.1370 region.
Key Quotes:
"Early in the European morning, the release of the European PMIs showed that growth in the region continues, as Services and Composite figures for most of the countries and the area itself, beat expectations in April, except for German readings, slightly below expected."
"But it was the US ADP survey poor result which triggered a dollar sell-off, later fuelled by headlines suggesting Greece and the rest of the Eurogroup could reach an agreement by Monday. The US survey on employment printed 169K against the 200K expected, anticipating another tepid Nonfarm Payroll for next Friday."
"Technically, the EUR/USD pair extended sharply above the key support of 1.1120, the 61.8% retracement of the 1.1533/1.0461 slide, anticipating a full retracement towards the 1.1530 level."
"Short term, the 1 hour chart shows that the price has posted a limited downward correction during the American afternoon before resuming its advance, currently pressuring the daily high, whilst it stands well above its moving averages."
"Technical indicators in the mentioned time frame resumed their advance after correcting extreme overbought readings, all of which favors additional advances."
"In the 4 hours chart, the technical indicators present a strong upward momentum, whilst the price is well above its 20 SMA that slowly gains upward slope, supporting the shorter term view."
Key Quotes:
"Early in the European morning, the release of the European PMIs showed that growth in the region continues, as Services and Composite figures for most of the countries and the area itself, beat expectations in April, except for German readings, slightly below expected."
"But it was the US ADP survey poor result which triggered a dollar sell-off, later fuelled by headlines suggesting Greece and the rest of the Eurogroup could reach an agreement by Monday. The US survey on employment printed 169K against the 200K expected, anticipating another tepid Nonfarm Payroll for next Friday."
"Technically, the EUR/USD pair extended sharply above the key support of 1.1120, the 61.8% retracement of the 1.1533/1.0461 slide, anticipating a full retracement towards the 1.1530 level."
"Short term, the 1 hour chart shows that the price has posted a limited downward correction during the American afternoon before resuming its advance, currently pressuring the daily high, whilst it stands well above its moving averages."
"Technical indicators in the mentioned time frame resumed their advance after correcting extreme overbought readings, all of which favors additional advances."
"In the 4 hours chart, the technical indicators present a strong upward momentum, whilst the price is well above its 20 SMA that slowly gains upward slope, supporting the shorter term view."