The euro/dollar started it’s week uneventfully
19.05.2014
The main currency pair started the week with trading with a slight increase, but it will hardly manage to develop momentum today.
EUR / USD opened the next five days of trading in positive territory, and only strengthened on Monday afternoon.
The volumes at the start of the week, however, were small - the entire increase in EUR / USD seems more like a technical rebound from the February lows.
The macroeconomic calendar for Monday is empty; no significant statistical publications are expected today.
The calm external background gives investors a chance to reshuffle portfolios and time to analyse the new reality, given the facts that the market participants already know. For example, the fact that the European Central Bank will now be happy to use the mechanism of verbal intervention when the euro is deemed too high. This in turn means that the euro/dollar is not yet allowed to grow for too long and too actively - all growth to 1.3900 / 1.3950 will provoke further reaction from the ECB and the new fall of the main pair.
The previously released statistics for the euro area were not impressive, the GDP data for the region in the first quarter was quite weak, and it once again played in favour of the greenback. The dollar also felt support from the data on the number of claims for unemployment benefits last week - it's still at a seven-year minimum.
Thus, despite the current rebound in the euro/dollar, the preponderance of forces is still on the bearish side. The goal for possible sales is set below 1.3670, but is activated only by a driver.
RoboForex Analytical Department
EUR / USD opened the next five days of trading in positive territory, and only strengthened on Monday afternoon.
The volumes at the start of the week, however, were small - the entire increase in EUR / USD seems more like a technical rebound from the February lows.
The macroeconomic calendar for Monday is empty; no significant statistical publications are expected today.
The calm external background gives investors a chance to reshuffle portfolios and time to analyse the new reality, given the facts that the market participants already know. For example, the fact that the European Central Bank will now be happy to use the mechanism of verbal intervention when the euro is deemed too high. This in turn means that the euro/dollar is not yet allowed to grow for too long and too actively - all growth to 1.3900 / 1.3950 will provoke further reaction from the ECB and the new fall of the main pair.
The previously released statistics for the euro area were not impressive, the GDP data for the region in the first quarter was quite weak, and it once again played in favour of the greenback. The dollar also felt support from the data on the number of claims for unemployment benefits last week - it's still at a seven-year minimum.
Thus, despite the current rebound in the euro/dollar, the preponderance of forces is still on the bearish side. The goal for possible sales is set below 1.3670, but is activated only by a driver.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.