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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - Is the 1.40 a fact? The EUR/USD is back testing the upper band of the weekly range around 1.3790. With the short term indicators pointing to the north, it seems a matter of time to see the Euro breaking above range and rising to the 1.4000 against the US Dollar.

On the other hand, it's not a casualty that Mario Draghi attempted to make a shy verbal intervention as he stated that ECB officials are ready to fail banks on the back of next year's stress tests adding pressure to banks and financial institutions across the European Union. Meanwhile, the pair remained surprisingly resilient near the key barrier at 1.3800 despite its strong tone.

However, chief analyst valeria Bednarik affirmed in a recent report that "Dollar temporal gains on risk sentiment are attracting buyers on the pair around 1.3740." So, EUR/USD dips could be seen as buy opportunities as "in the 4 hours chart indicators also corrected some, while price held near the fresh yearly highs, which reflects the strength of the buyers," Bednarik adds. "Further gains in the short term however, are subjected to local share markets behavior, as another round of selling in stocks may limit the ability of the pair to break beyond 1.3790 highs."

The EUR/USD closed Wednesday at 1.3775, just in consolidation mode following the latest bullish movement. Next resistances are at 1.3795, 1.3860 and 1.3900. The 1.4000 seems still far despite it's the basic target in the weekly chart.

The GBP/USD was rejected at the 1.6260 with the pair trading back to test the 1.6120 floor. Now the Cable is pricing at 1.6165. The USD/JPY collapsed from 98.20 to reach fresh lowest since October 9th at 97.15. However the pair managed to recover ground and it closed the day above the MA 200 days level at 97.25. Remind that the MA 200 days worked as support early thi month in October 7th and 8th.

Main headlines in the American session:

US: Import Price Index rose 0.2% MoM in September

US: Housing Price Index grows less than projected in August

BoC interest rate on hold at 1% in October

Draghi says ECB officials prepared to fail banks in next year's stress tests

Goldman president: US economy in almost exact same place as last year

Fitch affirms Portugal at BB+; outlook remains negative

Wall Street lost positions as earnings aren't good at all
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