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EUR points lower as data keeps tapering alive

Market Analysis

EURUSD, Daily               

The euro has come under some pressure generally, presently showing an average 0.3% decline versus the dollar, yen and sterling. The biggest loss is to the pound, which has rebounded on news that PM May will be allowing parliament to debate the government’s negotiating stance ahead of triggering Article 50. EURUSD has clocked a 10-week low at 1.1015, making this the third straight day a lower low has been seen, over which time the pair has shed 1.7%. Fed tightening expectations (all of our post-employment data survey respondents expected a tightening to occur at the December 13-14 FOMC meeting) have juxtaposed to ECB policymakers recent downplaying last week’s Bloomberg report that an internal consensus had been reached to taper the QE program.

EURUSD’s technical picture remains one of bearish momentum. The pair has broken back below, and posted two daily closes below, the 200-day moving average, which is presently sitting at 1.1172. The clear break of the 200 DMA,  which was confirmed yesterday generated a SHORT position this morning which was entered at  1.1035. The next downside targets are Target 1 1.0950, the recent July low and Target 2 1.0917,  the June low.

 

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Stuart Cowell

Market Analyst

HotForex

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