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EURUSD resided for trading near but below 1.10

Discussion in 'Current Market Sentiments' started by fx-recommends, Dec 29, 2015.

  1. fx-recommends

    fx-recommends Content Contributor

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    In the beginning of another short week of trading, The greenback could weigh down on the commodities and energy prices on the current bullish interest rate outlook in US, while the US major stocks indexes lived the first session of the week in the red territory but they could lower their losses by the end of the day.

    There was no important economic released data from US yesterday but Dec Dallas Fed Manufacturing Business Index which plunged to -20.1 from -4.9 in November.

    After the Fed's decision to raise its funds rate by 0.25% initially expecting reaching 1.375% at the end of 2016, The change of the interest rate outlook in US has been materialized yesterday in the prime money market this time by new auction of UST 2YR issuance ended on yield rising to 1.056% from 0.948% on last Nov. 23 Auction.

    The market main focusing today is expected to be on the release of Dec US Consumer confidence figure which is expected to improve to 93.4, after 90.4 in November.

    EURUSD could keep trading near but below 1.10, after rebounding from 1.08 area to drive up its daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility up to have its main line in the overbought region above 80 reading now 86.262 and also its signal line which is reading 83.464.

    EURUSD was able to keep its supporting level at 1.0519 unbroken by bouncing up from 1.0538, after the ECB's decision to lower the deposit rate by 0.1% to -0.3% only.

    EURUSD rebound made its view over the short term looking better with trading now above its Daily SMA50 but it's still undermined over longer term by keeping existence below its daily SMA100 and daily MA200.

    Important levels: Daily MA50 @ 1.0846, Daily MA100 @ 1.0053 and Daily MA200 @ 1.0044

    S&R:

    S1: 1.0793
    S2: 1.0519
    S3: 1.0461
    R1: 1.0058
    R2: 1.0093
    R3: 1.1491

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid
    walid.s@trade-24.com
    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143
    Archive: http://www.trade-24.com/daily-analysis


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    #1 fx-recommends, Dec 29, 2015
    Last edited: Dec 29, 2015
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