Dennis Sherman
January 14 at 11:39 AM ·
EUR/USD Fundamentals
Euro continues to be responsive to global risk, Equities and the commodity currencies as the euro zone is dependent on imported Energy and there for its responsive to changes in energy prices in particular oil. And currently energy prices continue to fall.
The key inflation rate although not good is within the 1.9 percent ECB forecast and there fore the markets have already priced that in.
Holding the Euro up is more to do with the weak dollar then optimism in the Euro Zone. The Fed continue to pump money into the USA economy which in turn weakens the dollar as to increase money supply then interest rates are suppressed.
Falling Energy Prices/Brent.
Technicals
Against the Dollar euros most recent rise from 1.10229 = Novembers Key Level which bears failed to defend.
The key test for bulls will be resistance 1.13681 and if they succeed to get price to accept this level then bulls will set there sites on 1.4468. Downside risk is 1.06594 which is possible if either the Fed or ECB change policy or there is a sharp full in Equities or a sharp rise in commodity prices. We assume that the ECB and Fed will not u turn on policy.
EUR/USD Support and resistance Short term
January 14 at 11:39 AM ·
EUR/USD Fundamentals
Euro continues to be responsive to global risk, Equities and the commodity currencies as the euro zone is dependent on imported Energy and there for its responsive to changes in energy prices in particular oil. And currently energy prices continue to fall.
The key inflation rate although not good is within the 1.9 percent ECB forecast and there fore the markets have already priced that in.
Holding the Euro up is more to do with the weak dollar then optimism in the Euro Zone. The Fed continue to pump money into the USA economy which in turn weakens the dollar as to increase money supply then interest rates are suppressed.
Falling Energy Prices/Brent.
Technicals
Against the Dollar euros most recent rise from 1.10229 = Novembers Key Level which bears failed to defend.
The key test for bulls will be resistance 1.13681 and if they succeed to get price to accept this level then bulls will set there sites on 1.4468. Downside risk is 1.06594 which is possible if either the Fed or ECB change policy or there is a sharp full in Equities or a sharp rise in commodity prices. We assume that the ECB and Fed will not u turn on policy.
EUR/USD Support and resistance Short term
