FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the dollar ended the day slightly lower against most of its major rivals, with a strong decline in European and American stocks leading the way in a quiet trading journey.
Key Quotes:
“There were a few fundamental releases, starting early Europe with the German trade balance posting a surplus of €22.9 billion in September 2015, whilst exports and imports beating expectations and increasing by 2.6% and 3.6% respectively. Prospects of a US rate hike next December have finally taken their toll over worldwide stocks, with bonds also plunging and yields rising.
The EUR/USD pair seesawed between 1.0718 and 1.0789, and the short term picture suggests that the pair is ready to resume its decline, as in the 1 hour chart, the technical indicators have erased all of their oversold readings, and after entering positive territory, are now heading south below their mid-lines. In the same chart, the price hovers around a flat 20 SMA, whilst remains far below the 100 and 200 SMAs.
In the 4 hours chart, the 20 SMA has extended its decline above the current price and now offers a dynamic resistance around 1.0815, whilst the technical indicators have corrected their extreme oversold readings, but remain well into the red and far from suggesting further gains ahead.”
(Market News Provided by FXstreet)