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There is reason to think EUR/USD has peaked

Posted by Marge Maresca on Aug 10, 2017 3:35:03 PM

There are signs EUR/USD's August 2 high at 1.1910 will not be bettered before key central bank meetings in September. Interest rates have been moving in opposition to the EUR/USD rally for some time with UST spreads to bunds widening. With traders holding a sizeable long position the bond moves were going to provide significant drag. Choppy trade like that seen since the U.S. jobs data may also be a sign of the end of a trend. With risk aversion spiralling on the back of escalating tensions between North Korea and the United States, those long EUR have good reason to scale back. With most EUR longs in profit, to pare is an easy decision. Another factor that will likely drag on the EUR is the sudden rise of China's yuan. The CNY TWI has jumped 1.2% in 3 days. After the dollar the euro is the largest component of the index and logically will be weighed by such significant gains.There are signs EUR/USD's August 2 high at 1.1910 will not be bettered before key central bank meetings in September. Interest rates have been moving in opposition to the EUR/USD rally for some time with UST spreads to bunds widening. With traders holding a sizeable long position the bond moves were going to provide significant drag. Choppy trade like that seen since the U.S. jobs data may also be a sign of the end of a trend. With risk aversion spiralling on the back of escalating tensions between North Korea and the United States, those long EUR have good reason to scale back. With most EUR longs in profit, to pare is an easy decision. Another factor that will likely drag on the EUR is the sudden rise of China's yuan. The CNY TWI has jumped 1.2% in 3 days. After the dollar the euro is the largest component of the index and logically will be weighed by such significant gains.

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Topics: EURO, eur/gbp

Today’s Trading Edge: EUR/USD clears 1.10 as dollar rally fades

Posted by WorldWideMarkets . on May 16, 2017 10:01:21 PM

The euro rallied over 1.0% against the dollar and cleared the key $1.10 following strong European data and concerns that political trouble for President Trump will delay his reform agenda. 

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Topics: EURO, EUR/USD

Today’s Trading Edge: EUR/GBP – Central banks favor sterling over euro on political stability concerns

Posted by WorldWideMarkets . on Apr 2, 2017 8:47:42 PM

Central Banking Publications published a survey of reserve managers at 80 central banks, who control around €6 trillion.  The report highlighted that they are most concerned over the stability of the monetary union in 2017.  Despite the uncertainty that surrounds the Brexit negotiations, the poll showed sterling may be a safer prospect for their reserve investment versus the euro. 

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Topics: EURO, EURGBP, $EUR, $GBP, EURUSD, GBPUSD, USDJPY, AUDUSD

Technical Analysis: EUR/GBP Consolidation & Fibo Resistance 0.8853 (23.60%)

Posted by Chris Advincula on Mar 17, 2017 6:28:55 AM

(Mar 17 Friday) The euro-sterling daily chart displays a consolidation path between the Fibonacci 23.60% high of 0.8853 (Jan 16) and the Fibo 50.00% low of 0.8393 (Feb 20). This is a consolidation range of 460 pips since Dec 26, within a lesser defined symmetrical triangle formation. A breakaway from the triangle could determine the next potential move in the short term run.

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Topics: EURO, EURGBP, Sterling Pound, technical analysis, Forex

Technical Analysis: EUR/CHF Descending Channel 1.1200 - 1.0825

Posted by Chris Advincula on Mar 14, 2017 6:53:56 AM

(Mar 14 Tuesday) The EUR/CHF daily chart displays a descending channel pattern from 1.1200 high (Feb 3) to the current intraday high of 1.0825 showing the weakness of the euro is still intact, while swiss buying is still adding to the pressure on euro=swiss. The immediate 14 DMA support is 1.0650 (Mar 6) and the 30 DMA support is 1.0660 and 1.0600 (psychological level - nonetheless watch for the SNB intervention support).

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Topics: EURO, Swiss franc, EURCHF, technical analysis, Forex

 

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