FXStreet (Greenback) – Valeria Bednarik, chief analyst at FXStreet explained that the American dollar closed the day generally higher against all of its major rivals, albeit the EUR/USD pair trimmed most of its intraday losses in the US session.
Key Quotes:
“The pair fell down to 1.0795, its lowest ever since ECB’s Draghi announced a soft extension of QE last Thursday, and triggered the largest EUR advance in over five years. Ever since, the common currency has been presenting a bullish tone that persists, despite the pair ending the day in the red. The macroeconomic calendar was soft, with Germany releasing its Industrial Production data for October, up by 0.2% compared to a month before, but flat on the year. The intraday decline however, can be blamed on a strong advance in European equities at the beginning of the day, later erased.
The intraday technical picture is far from suggesting a downward continuation, and the pair seems ready to extend its recovery, given that in the 1 hour chart, the price is back above its 20 SMA, while the RSI indicator aims higher around 53.
In the 4 hours chart, the Momentum indicator has returned to 100, presenting now a strong bearish slope, but rather in line with the latest retracement than suggesting further declines. In this last time frame, the pair has managed to bounce from a strongly bullish 20 SMA, how around 1.0805, while the RSI indicator hovers around 54, reflecting that bulls remain on the drivers’ seat.”
(Market News Provided by FXstreet)