Article by ForexTime
The euro is trading at lower levels Wednesday, despite softer than expected U.S. data on Tuesday which included a miss on headline retail sales and industrial production. ECB-speak which included comments from Constancio where he said that the small size of the central bank’s bond-buying program to date gives scope for more action, and his colleague Nowotny said that an extension in QE is possible.
The EUR/USD currency pair dipped to a six-day low of 1.1227, testing the 200-day moving average that is presently sitting at 1.1229. Constancio’s and Noxotny’s remarks seem well timed, being a day ahead of the Fed’s decision tomorrow, with Eurozone policymakers perhaps eager to undermine any perceived safe-haven credentials of the euro.
Resistance on the currency pair is seen near a downward sloping trend line that connects the highs in August to the highs in September and comes in near 1.1280. Momentum remains positive but the trajectory of the MACD is now flat reflecting the currency consolidation ahead of Thursday’s Fed meeting.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
