Yesterday’s Trading:
By the end of Tuesday, the euro was up against the dollar by 60 points to 1.0891. The Swiss franc was also stronger against the USD. The Aussie and the pound were down. The market is undergoing a correctional phase after the ECB meeting and Draghi’s words.
Main news of the day (EET):
Market Expectations:
I don’t see any readiness on the market for simultaneous, unidirectional movement of currency pairs. I think that the correction will continue until Thursday. If I were to pick the most important out of today’s events, I’d have to highlight the RBNZ meeting.
Technical Analysis:
The euro has renewed its session maximum against the dollar in Asia. The euro/dollar is trading at the U1 line around 1.0902. The technical picture across the key pairs is contradictory, so I believe the market will sit in a correctional phase until Thursday.
As for the euro/dollar, any support from the euro/pound will leave me expecting to see a growth to 1.0947 with a subsequent bounce to 1.0898. Taking into account that the pound/dollar has closed of Thursday’s growth by 76%, it’s doubtful that the euro/dollar will head above 1.0980.
Source: alpari.com, “Euro/Dollar: Technical Picture Contradictory”
