24 Aug 2015
EUR/USD rallies to 1.1600 on Lockhart
FXStreet (Guatemala) - EUR/USD is currently trading at 1.1583 with a high of 1.1715 and a low of 1.1368.
EUR/USD climbed 20 pips and up to test the 1.16 handle on the back of comments from Fed's Lockhart who underpinned the sentiment that the Fed will begin to hike interest rates this year while acknowledging that the Yuan, dollar and oil prices complicate the US outlook.
This speech came five minutes before the close on Wall Street, and as if Wall Street had not seen enough turbulence on Black Monday already. The markets have been in mayhem since the Asian open with gaps across the board as traders piled into the euro, unwinding positions in riskier assets that had been funded with ultra cheap euros, sending the greenback, EM's and commodity currencies into a tailspin and setting off global stock market crashes throughout Asia bourses.
These crashes were then exacerbated throughout European and US sessions today with big percentage losses across the shares and stocks on the opening. The UK FTSE index opened more than 200 points lower and the DAX by more than 420 pts. The S&P 500 briefly lost 100 points in the Wall Street open, while the Dow Jones industrial average traded about 300 to 500 points lower after falling as much as 1,089 points in the open.
EUR/USD at panic stations, technicals are just for show
The market stabilised, relatively speaking, in the late afternoon session in the US, but the fun may not be over yet. Valeria Bednarik, chief analyst at FXStreet explained that the technical indicators have corrected extreme overbought readings and stabilised well above their mid-lines, whilst the 20 SMA heads strongly higher, converging with the 61.8% retracement of the same rally around 1.1500.
"In the 4-hours chart, the technical indicators are slowly beginning to ease, but remain in extreme overbought territory, with the RSI indicator around 90. The wild moves are far from over, and with the Asian opening, the market could run again into panic, making of the technical indicators, worthless intraday tools."
EUR/USD climbed 20 pips and up to test the 1.16 handle on the back of comments from Fed's Lockhart who underpinned the sentiment that the Fed will begin to hike interest rates this year while acknowledging that the Yuan, dollar and oil prices complicate the US outlook.
This speech came five minutes before the close on Wall Street, and as if Wall Street had not seen enough turbulence on Black Monday already. The markets have been in mayhem since the Asian open with gaps across the board as traders piled into the euro, unwinding positions in riskier assets that had been funded with ultra cheap euros, sending the greenback, EM's and commodity currencies into a tailspin and setting off global stock market crashes throughout Asia bourses.
These crashes were then exacerbated throughout European and US sessions today with big percentage losses across the shares and stocks on the opening. The UK FTSE index opened more than 200 points lower and the DAX by more than 420 pts. The S&P 500 briefly lost 100 points in the Wall Street open, while the Dow Jones industrial average traded about 300 to 500 points lower after falling as much as 1,089 points in the open.
EUR/USD at panic stations, technicals are just for show
The market stabilised, relatively speaking, in the late afternoon session in the US, but the fun may not be over yet. Valeria Bednarik, chief analyst at FXStreet explained that the technical indicators have corrected extreme overbought readings and stabilised well above their mid-lines, whilst the 20 SMA heads strongly higher, converging with the 61.8% retracement of the same rally around 1.1500.
"In the 4-hours chart, the technical indicators are slowly beginning to ease, but remain in extreme overbought territory, with the RSI indicator around 90. The wild moves are far from over, and with the Asian opening, the market could run again into panic, making of the technical indicators, worthless intraday tools."