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27 Feb 2015
EUR/USD: Expecting a resumption of the downside; Tgt, 30yr channel
FXStreet (Guatemala) - EUR/USD is currently trading 1.1193 with a high of 1.1245 and a low of 1.1175.
EUR/USD continues on the offer and is heavy, failing to meet previous highs, through 1.1225. The drift higher form yesterday was met with supply at 1.1240/43 on two occasions, a double top and we are back on the offer into the closing hours of this week's session.
The major has been sold on the back of the Reuters/Michigan US consumer sentiment index earlier that was beating expectations at 95.4 vs. 94.0 consensus for Feb and has not been able to recover since. Next week comes with a list of activity in the Eurozone. EZ CPI is coming up on Monday and may follow suit of the Germans data that beat expectations today on the basis of oil stabilising and food prices creeping up. Then we have the ECB Decision on Thursday 5th March. This is unlikely to be much of a showdown mind you, as all announcements that were expected of the ECB have been made although there could be some finer detail to come in respect to the conditions surrounding QE commencing and the Euro is likely to come under pressure in the event of further supply in the Euro onto the market.
Intraday Elliot waves intraday counts are also negative, suggesting a resumption of the downside, and while we may be consolidating now, Karen Jones, chief analyst at Commerzbank and a bear on 1-3 month outlook explained that they are targeting 1.0835/50% from the 1985 low then 1.0575 the 30 year channel.
EUR/USD continues on the offer and is heavy, failing to meet previous highs, through 1.1225. The drift higher form yesterday was met with supply at 1.1240/43 on two occasions, a double top and we are back on the offer into the closing hours of this week's session.
The major has been sold on the back of the Reuters/Michigan US consumer sentiment index earlier that was beating expectations at 95.4 vs. 94.0 consensus for Feb and has not been able to recover since. Next week comes with a list of activity in the Eurozone. EZ CPI is coming up on Monday and may follow suit of the Germans data that beat expectations today on the basis of oil stabilising and food prices creeping up. Then we have the ECB Decision on Thursday 5th March. This is unlikely to be much of a showdown mind you, as all announcements that were expected of the ECB have been made although there could be some finer detail to come in respect to the conditions surrounding QE commencing and the Euro is likely to come under pressure in the event of further supply in the Euro onto the market.
Intraday Elliot waves intraday counts are also negative, suggesting a resumption of the downside, and while we may be consolidating now, Karen Jones, chief analyst at Commerzbank and a bear on 1-3 month outlook explained that they are targeting 1.0835/50% from the 1985 low then 1.0575 the 30 year channel.