EUR/USD: thoughts from M. Jensen
By Mark Jensen, FBS analyst
On the daily chart EUR/USD formed a shooting star candle and closed below the 55-day MA. The pair found support in the $1.3625 area (200-period MA at H4) and there’s some reanimation as the European trading started. Yesterday’s speech by the Fed’s Chairwoman Janet Yellen made investors “buy-the-rumor-sell-the-fact”.
Euro zone’s industrial production is due at 10:00 GMT today. The forecast is bad and this release could only help euro in case of a big upside surprise. Mario Draghi will speak at a conference in Brussels at 15:30 GMT. Resistance is at $1.3650, $1.3683, $1.3705 and $1.3725. Support is at $1.3622, $1.3607, $1.3580 and $1.3550. We may see a sideways trading today. Upside looks limited.
In the days ahead the pair’s dynamics will greatly depend on the incoming economic data. The Fed has made its point that it doesn’t really have a prepared course, but is going to be flexible and pattern its policy to the economic outlook.
Chart. Daily EUR/USD