FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that with the EUR/USD and the USD/JPY pairs being the exception, the dollar traded firmly higher against all of its major rivals, in a Tuesday dominated by risk aversion since the Asian session opening.
Key Quotes:
“The American currency rallied as commodities prices fell sharply lower, and despite US data was far from encouraging. In Europe, money supply data showed that credit to local businesses fell back in September to 0.1% yearly basis, from a previous 0.4%, which helped keep the pair limited around 1.1050 for most of the European morning.”
“In the US, Durable Goods Orders fell 1.2% in September, the second straight drop, amid softness in the manufacturing sector. The Markit Flash Services PMI eased to 54.4 in October from the previous 55.1, while Consumer Confidence in the same month, fell down to 97.6 from a previously revised 102.6.”
“The pair traded within 50 pips and closed slightly lower, after completing a pullback to the long term ascendant trend line broken last week, at 1.1080. The technical stance is bearish, albeit the US Federal Reserve will have its monthly economic meeting late Wednesday and the market will probably trade on sentiment rather than technical. Anyway, and for the upcoming hours, the 1 hour chart shows that the price is below its 20 SMA, whilst the technical indicators show no actual strength, but hold in negative territory.”
“In the 4 hours chart, the Momentum indicator extended its advance and is currently around its 100 level, but the price was unable to hold gains above a strongly bearish 20 SMA whilst the RSI indicator turned back south after correcting extreme oversold readings, all of which supports further declines on a break below the 1.1000 figure.”
(Market News Provided by FXstreet)