Market Analytics and Technical Considerations
After the US Dollar paused its advance, the Euro found support.
Markets were reminded by Fed spokespeople that rate increases are on the way, even if they are modest.
Will the EUR/USD resume its slump if the Fed raises rates and China implements restrictions.
On the first day of this trading week, the euro lost value relative to the dollar. The release of German manufacturing inflation statistics at 7:00 (GMT) sparked a sell-off that continued as the European session got underway, taking the price down to 1.0228. The market closed at roughly 1.0240 as the pair found support there. The European balance sheet statistics, which will be released at 9:00 today, can provide insight into whether the downward trend will persist (GMT).
Last week, EUR/USD rolled over and went down after closing back inside the Bollinger Band based on the 21-day simple moving average (SMA). Such a shift could portend the possibility of a turnaround.
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