Filed Under:
Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - The EUR/USD fluctuated wildly Wednesday but ended up on the lows of the session – highlighting the Dollar’s strength and the belief that “tapering” will not be delayed much further.

EUR/USD pushed lower by Dollar strength / rising Treasury yields

After the release of the FOMC minutes, traders pushed the EUR/USD to new session lows (DXY strength), then sharply higher (DXY weakness) and then back towards the lows into the session close Wednesday. Thus far in the Thursday session, the cross is hovering just above Wednesday’s lows.

Throughout the Thursday and Friday sessions, traders and analysts will be focused on the real-time commentary emanating from the Jackson Hole Symposium. Additionally, however, there is a very heavy flow of data due out of various European sources and the US.

Technical outlook for EUR/USD

Technicians are pointing to 1.3414 – 1.3415 as potentially being a major bearish turning point for the EUR/USD. So far, they are accurate, but the action Tuesday was inconclusive. On the bearish side, EUR/USD opened higher and finished lower – below Tuesday’s midpoint. However, from a bullish lens, the cross simply put in an “inside day” – meaning the previous trend (higher) should resume (in theory). If they are correct in their bearish intermediate-term call, then a major move lower should commence shortly and will take the cross all the way down to approximately 1.2400 – 1.2500.
comments powered by Disqus