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The single currency is still depressed by Draghi's guidance

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 22, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

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    EURUSD Daily 22-01-2016 06-18-15 ص.jpg
    The single currency is still depressed by the ECB's president Mario Draghi who managed to send dovish forward guidance like what he did in October meeting, before December meeting deposit rate cutting by 0.1% to -0.3% and decision to extended the ECB bond-buying program until at least March 2017 from September 2016.
    Draghi said yesterday that "The ECB may reconsider its policy stance in March amid a deteriorating economic outlook and turmoil in global markets".

    After spending most of last week trading times near 1.088, EURUSD has decided to pull back to be traded near 1.0840 currently.
    The pair is still below the trendline resistance extension from 1.3992 to 1.1712, after failing to rise above its daily SMA100.
    The pair is now in meeting with its daily SMA50 in its day number 6 of continued existence above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.0735.
    After having balanced situation by residing for trading near 1.088, the pair parameters are showing now tendency to the downside.
    EURUSD daily RSI-14 is in the neutral region reading now 46.077 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral region reading 38.438 leading to the downside its signal line which is reading 44.728.

    Important levels: Daily MA50 @ 1.0827, Daily MA100 @ 1.0990 and Daily MA200 @ 1.1051
    S&R:
    S1: 1.0709
    S2: 1.0519
    S3: 1.0461
    R1: 1.0991
    R2: 1.1058
    R3: 1.1093


    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    walid.s@trade-24.com
    Tel: UK. +44 1138590277
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