After the
fundamentals this week EUR/USD started moving to the downside again, reaching
and eventually breaking below 1.1200, but after that the pair retraced above
that level again. Now the question is whether EUR/USD will continue falling. I
have little doubt at the moment that the pair will test 1.1200 again and then likely
break below that level, considering the doji candlestick that has formed on the
four-hour time frame. If the pair does break below 1.1200 its next target will likely be
1.1150. That level, however, is a pretty strong support and whether or not EUR/USD will succeed in breaking below it is debatable.
We'll have to wait and see what happens next week.
ReplyDeleteThe first consequence of the prospect of an increase in interest rates was a generalized rise in US interest rates in the bond and money markets. With this increase becomes more attractive hold dollars because they are remunerated at a higher interest rate than the Euro and the Yen (two currencies with a perception of risk almost identical to the US dollar).
ReplyDeleteIt has found support at 1.1200.
ReplyDelete