Euro / dollar continues to recover
27.05.2014
This Tuesday morning the main currency pair is trading at an increase, using the background information as the support for a technical rebound.
Thus, recovery of the euro/dollar continues for the second day in a row. This is the technical rebound, the market has patiently waited for, and it should prove to be productive.
On the one hand, some support for the euro/dollar came from the comments by the head of the European Central Bank, Mario Draghi, who spoke yesterday at a conference in Portugal. The ECB, in general, once again confirmed that it would act if inflation proves weak. And we remember that the main cause of the weakening of inflation was earlier called by Draghi – an expensive euro. The parallel is obvious: if inflation is not rehabilitated, the ECB will put pressure on the euro.
During the previous week the decline in the euro/dollar exceeded 100 points, the pair moved consistently and predictably. Now a technical correction may well raise the instrument to around 1.3695.
This afternoon interesting statistics on the U.S. economy will be released, including a report on orders for durable goods in April. Surprises are not excluded, and it is not a fact that they will be the pleasant kind.
RoboForex Analytical Department
Thus, recovery of the euro/dollar continues for the second day in a row. This is the technical rebound, the market has patiently waited for, and it should prove to be productive.
On the one hand, some support for the euro/dollar came from the comments by the head of the European Central Bank, Mario Draghi, who spoke yesterday at a conference in Portugal. The ECB, in general, once again confirmed that it would act if inflation proves weak. And we remember that the main cause of the weakening of inflation was earlier called by Draghi – an expensive euro. The parallel is obvious: if inflation is not rehabilitated, the ECB will put pressure on the euro.
During the previous week the decline in the euro/dollar exceeded 100 points, the pair moved consistently and predictably. Now a technical correction may well raise the instrument to around 1.3695.
This afternoon interesting statistics on the U.S. economy will be released, including a report on orders for durable goods in April. Surprises are not excluded, and it is not a fact that they will be the pleasant kind.
RoboForex Analytical Department
Attention!
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.