25 Mar 2014
Session Recap: Sting like a bee; EUR/USD fast but brief 3-day peak
FXStreet (San Francisco) - The great Muhammad Ali said once 'float like a butterfly and sting like a bee,' and it seems to have happened with the EUR/USD today. Following a break below the 80.00 level in the dollar index chart, majors were shaken and almost all crosses rose against the Greenback. However movement was anything but long lasting; a Chinese diversification again?
USD weakness looked to be due to technical factors as no fundamental catalysts were appreciated in the New York afternoon. The movement started after the European closing bell as the EUR/USD jumped from 1.3780 to 3-day highs around 1.3875; around 100 pips flew in a matter of minutes.
EUR/USD closed at 1.3835. The short term picture is now bullish with "the 4 hours chart showing current candle opening well above its 20 SMA, and indicators heading north after crossing their midlines to the upside," as Valeria Bednari from FXStreet commented in a recen piece.
The GBP/USD climbed 50 pips from 1.6485 to 1.6535, however the pair is right now trading at previous levels just below 1.6500. The AUD/USD jumped to 0.9150 briefly too, but it returned to 0.9125 where it finished. USD/CAD declined below the 1.1200 area in the movement and it remains there. Gold collapsed to nearly 1-month lows around 1,308/oz.
'Float like a butterfly, sting like a bee. The hands can't hit what the eyes can't see.'
Main headlines in the American session
US Chicago Fed National Activity Index increased to 0.14 in February from previous -0.45
US Markit Manufacturing PMI came in at 55.5 disappointing forecasts (56.5) in March
Wall Street closed down but came off lows
USD weakness looked to be due to technical factors as no fundamental catalysts were appreciated in the New York afternoon. The movement started after the European closing bell as the EUR/USD jumped from 1.3780 to 3-day highs around 1.3875; around 100 pips flew in a matter of minutes.
EUR/USD closed at 1.3835. The short term picture is now bullish with "the 4 hours chart showing current candle opening well above its 20 SMA, and indicators heading north after crossing their midlines to the upside," as Valeria Bednari from FXStreet commented in a recen piece.
The GBP/USD climbed 50 pips from 1.6485 to 1.6535, however the pair is right now trading at previous levels just below 1.6500. The AUD/USD jumped to 0.9150 briefly too, but it returned to 0.9125 where it finished. USD/CAD declined below the 1.1200 area in the movement and it remains there. Gold collapsed to nearly 1-month lows around 1,308/oz.
'Float like a butterfly, sting like a bee. The hands can't hit what the eyes can't see.'
Main headlines in the American session
US Chicago Fed National Activity Index increased to 0.14 in February from previous -0.45
US Markit Manufacturing PMI came in at 55.5 disappointing forecasts (56.5) in March
Wall Street closed down but came off lows