The main event of the last week was the meeting of the European Central Bank. In the current situation with the economy of the Eurozone expectations of any actions on the further weakening by the central bank of monetary policy was very low, so the euro against US dollar most of the week was trading with a positive attitude, testing and breaking the resistance in the area of the 12th figure and at the level of 1.1260 then, continue to grow, it rose to the resistance in the area of 1.1326.
According to the results of the meeting the Central Bank has decided to keep the interest rate, as well as the size and timing of asset purchases. The market's reaction at first was the purchase of a single currency, but its growth to above resistance was used to take profit, against which it has returned to the area of the 12th figure. Overall, the pair is in the long-term consolidation phase, and while it is trading above 1.1200, the chances of growth towards the upper border of the range will remain. The loss of this level will increase the risks of testing and breaking of 1.1000.
Due to lower expectations of US FRS increasing the interest rates at the next meeting and a weak ISM index in the services sector, the US dollar at first declined against the Japanese yen, testing the support at 101.20. On the eve of the next meeting of the Bank of Japan, bears decided to take profits on short positions, triggering recovery of the pair to 103.05. About improvement of its prospects, however, there is nothing to say, because in the conditions of falling stock indexes further recovery of the dollar/yen is associated with certain difficulties. While the pair trades below 104th figure, risks of falling at least to the level of 100.00 will remain high, what should be considered by IAFT traders. BloglLinks
Best regards, AffiLinks
International Association of Forex Traders
No comments:
Post a Comment