During the week, the equity markets celebrated the Fec rate cut and, recently, the cut from the BoJ. In Forex, the behaviour was clearly seen in the EurUsd, which was able to rebound 1000 pips in four days.
From the 1.2340 low in the Asian session yesterday, it hit the 1.3333 high. Despite that, once the stock euphoria vanished, people realised we are in a global economic slowdown. Therefore, the stocks are back in the red, going back to the Dollar safe haven.
Other factor for the recent profit taking on the EurUsd was the decline, bigger than expected, in the German retail sales in September, which puts pressure on the ECB to cut interest rates as soon as possible.
Waiting for a basket of data from the US, the EurUsd is trading at 1.2694, ranging from 1.2688 to 1.2924. The current price is over yesterday's close at 1.2915. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are over the 200-day EMA.
As the supports at 1.2500 (key), 1.2324 (January 2006 high) and 1.2000 (key). The resistances are at 1.2733 (October 23rd high), 1.3000 (key), 1.3353 (October 21st high) and 1.3769 (October 14th high).
Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 34 points, rebounding from the overbought area. The average volatility per hour is 310 pips. Going with the daily graphics, we see that the current price is under the 38.20% (1.3063) and over the 50.00% (1.2141) Fibonacci retracement lines.
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