EUR/USD extends correction dynamically

FXStreet — The dollar rose in early American business created a masterpiece — and so fell the currency pair EUR/USD to a new session low at around 1,0940/30.

The currency pair was unable to hold early gains above the psychologically important mark of 1.10 and came under renewed selling pressure, after the investors had taken profits as a response to the recent high-altitude flight. In the last three weeks, the currency to put few more than 400 Pips.

In addition, the probability of a rate hike by the US Central Bank, the Fed, rose further in June, after the latest US labour market data ensured that no negative Surprise. This resulted in new bids around the Greenback in the case of simultaneous profit taking in the Euro.

The hawkish comments from the Fed Boss, of Cleveland, Loretta Mester, are largely negated by the negative Comments of the Fed President of St. Louis James Bullard.

However, the speeches also had no negative influence on the Greenback and the US Dollar Index was quoted recently in the vicinity of session highs at 98,85.

The US labour market: A solid report
Fed’s Bullard: policy rate is currently at a attached to level
Fed’s Mester: labour market objectives are achieved; approaching the inflation target of 2%
EUR/USD target is now the 1,1050

Technical Outlook

Valeria Bednarik, chief market analyst at FXStreet, wrote: «Due to the fact that the currency pair of the 20SMA could not conquer, while the technical indicators continued their decline in the positive area, it should extend its correction. A decline to 1,0850 appears to be possible. The chart technical situation would brighten, however, when the Pair of the area in 1,0980 back Robert“.

** FXStreet News Editorial, FXStreet**

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