So, the dollar failed to rally despite outstandingly positive GDP and
employment figures, and the EUR/USD found buyers on dips, pointing to
close this first week of December at fresh 5 weeks highs. What happened
to “taper trading”? An educated guess will suggest numbers had not been
enough to change what market players had already priced in that is, no
taper at least until March 2014. But upcoming FED meeting on December
18th, will be the last of Bernanke as chairman. Will he dare to kick
start tapering anyway, so he can leave with the feeling of mission
accomplished?
Looking to sell at 13830 a double top.
Market consensus seems to disagree with such theory, and rather focus in upcoming head Yellen dovish preferences. But can the EU support a strong EUR? ECB latest decision to stay on hold followed a rate cut to record lows of 0.25%. The EUR/USD tested 1.3290 afterwards, and it has been a one way ride ever since. And while European recovery is still on doubt, the EUR continues to surge regardless.
The daily chart shows indicators heading higher in positive territory, 20 SMA offering dynamic support for most of these last few days and heading north below current price, and overall, price accelerating above 1.3625, 61.8% Fibonacci retracement of the latest bearish run. So technically bulls prevail now aligned around mentioned Fibonacci support, with the 1.3700 area as immediate resistance: a break above it should lead to a retest of the 1.3831 high posted this year.
On the other hand, bears are quite far from taking control, as dips are still seen as buying opportunities as said before, with levels to watch at 1.3625, 1.3550 and the 1.3490 price zone, 38.2% retracement of the same rally.
View Live Chart for EUR/USD
Market consensus seems to disagree with such theory, and rather focus in upcoming head Yellen dovish preferences. But can the EU support a strong EUR? ECB latest decision to stay on hold followed a rate cut to record lows of 0.25%. The EUR/USD tested 1.3290 afterwards, and it has been a one way ride ever since. And while European recovery is still on doubt, the EUR continues to surge regardless.
The daily chart shows indicators heading higher in positive territory, 20 SMA offering dynamic support for most of these last few days and heading north below current price, and overall, price accelerating above 1.3625, 61.8% Fibonacci retracement of the latest bearish run. So technically bulls prevail now aligned around mentioned Fibonacci support, with the 1.3700 area as immediate resistance: a break above it should lead to a retest of the 1.3831 high posted this year.
On the other hand, bears are quite far from taking control, as dips are still seen as buying opportunities as said before, with levels to watch at 1.3625, 1.3550 and the 1.3490 price zone, 38.2% retracement of the same rally.
View Live Chart for EUR/USD
The following are on my watchlist as well
USD/CHF BUYdouble bottom at 8892
EURGBP, sell very soon, again
USD/JPY A break above 10382 is then heading for 110.50
Many other Yens will follow, eurjpy, cad/jpy, gbp/jpy etc
See my latest video update here : MARKET UPDATE HERE
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