EURO under pressure from higher interest rate

8 окт. 2018 г.

EURUSD Technical Overview:

Pivot: 1.1516 (CMP 1.1499)

Key Resistance: 1.1520 - 1.1540 - 1.1558 - 1.1580 - 1.1610

Key Support: 1.1491 - 1.1476 - 1.1448 - 1.1428 - 1.1410

Technical Indicator:

RSI: Indicator shows mixed bearish trend ahead.

Moving Average: SMA 50 (1.1510) & SMA 100 (1.1522) strong resistance for EURUSD today.

Technical Trade View:

Most Likely Scenario: long positions above 1.1500 with targets at 1.1530 & 1.1560 in extension.

Alternative scenario: below 1.1500 look for further downside with 1.1476 & 1.1450 as targets.

Fundamental:

EURUSD bulls have managed to hold support, next, they are likely to start thinking of increasing the buying and trying to push the euro higher. It may not be an easy task against the dollar which has been getting a lot of support from the Fed, of late. We have seen the dollar being well supported as the Fed has been hiking rates as per schedule and as per expectations of the market which has only increased its status as being one of the most stable currencies around, to invest in during times of crisis. This has been the case with the dollar for long but that feeling has only increased in recent times.

The dollar has been further supported by the talk from the Fed Chief Powell who has made it clear that the rate hike cycle is not close to its end as yet and this has only further boosted the dollar. Under these circumstances, it is to the credit of the euro bulls that they have managed to hold the support region around 1.15 but the move higher is only going to get more and more difficult in the days ahead. The economic news on the calendar is pretty much limited as of today and hence we can expect the euro to consolidate and range for most of the day.

Chinese equities took a big hit after traders returned from a week-long holiday. Efforts by the People’s Bank of China to free more than $100 billion in liquidity through cutting the reserve requirement ratio were not enough to offset the fear of slowing growth, the escalated trade dispute, and the rise in U.S. interest rates. The CSI 300 fell 3.6% late morning led by the technology sector as investors had the chance to respond to reports claiming that Chinese intelligence agents planted microchips to hack big tech firms and U.S. government agencies.

Thanks
YoCryptoManic