MArket have anticipate an increase of the interest rate by FEd based on FOMC minutes and statements from some FED officials. Although statistics show that FED has achieved its 2% inflation target, the BOARD is not ready yet to increase the interest rate because of many reason and among them suistainable growth, unemployment rate etc.
On the other hand, ECB with not launch its by back program yet alto R-LTRO and ABS program is ready.
Therefore at least until the end of QE3, we may see a last try of EUR on the upside, and at least an equilibrium from this oversold level.
On a purely indicator analysis, the pair is at 0.382 retracement, i.e there is room for an upside baring in mind the oversold level ( see RSI, CCI and STCH). It would be very difficult to reach again 1.40 because ECB said it would intervene, but 1.366 remain an important and achievable target.
On the other hand, ECB with not launch its by back program yet alto R-LTRO and ABS program is ready.
Therefore at least until the end of QE3, we may see a last try of EUR on the upside, and at least an equilibrium from this oversold level.
On a purely indicator analysis, the pair is at 0.382 retracement, i.e there is room for an upside baring in mind the oversold level ( see RSI, CCI and STCH). It would be very difficult to reach again 1.40 because ECB said it would intervene, but 1.366 remain an important and achievable target.
