Euro Approaches Record High $1.5983
The Euro climbed to within a cent of the record high of $1.5983 set on the 17 April after speculation that the European Central Bank will raise interest rates.
The currency rose before the release of a US housing sales report which has previously shown a fall.
Jeremy Stretch, a senior market strategist at Rabobank said, “In this environment the rhetoric from the ECB, especially the hardliners, remains strong and the market’s taking that on board. With fears about more negativity in the U.S. housing market, it looks like the euro-dollar’s going to be biased on the upside.” - Bloomberg
Meanwhile in Canada the Canadian Central Bank increased speculation of an interest rate cut which sent the Canadian dollar 0.8% lower against the US dollar.
Technical Chart: EURUSD
A look at the 1-hour technical chart for the EURUSD shows the spike earlier today sending the euro very close to an all-time high.
We can also see a previous support line offered resistance to euro gains yesterday. The price action is moving above a strong support line, with further euro gains looking likely.
If the price action can break through the near horizontal resistanc line, expect the euro to approach its all-time high again, if not breaking through it.
The 20-day moving average remains in an uptrend, and the 55-day moving average remains temporarily flat. The stochastic shows the euro is over-bought, therefore expect a retracement.
This shouldn’t fall below the 55-day moving average, as this is bolstered by the 38.2% Fibonacci line. If price action sits at this point, it gives a good entry point for the long position. However, if the price breaks below this region, it’s a no-trade.
[top]
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment