FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained and noted that the American dollar ended the day with gains against all of its major rivals, extending is post-FED helped by a steep decline in commodities’ prices.
Key Quotes:
“The EUR/USD pair started the day with a soft tone, and traded below 1.0880, the 38.2% retracement of the latest monthly decline, failing to recover above it on an early attempt to advance.
The common currency was dumped following the release of the German IFO survey, showing that business confidence in the country unexpectedly declined in December.
US data was mixed, with the weekly jobless claim resulting better-than-expected by falling to 271K in the week ending on December 11, although the manufacturing sector remains subdued, as the Philly FED index came out at -5.9 for December, against previous 1.9.
The short term picture for the pair suggests the decline is not yet over, as in the 1 hour chart the technical indicators have resumed their declines after limited upward corrective movements within negative territory, while the price is currently developing well below its moving averages.
In the 4 hours chart, the 20 SMA heads lower well above the current level, the RSI indicator heads lower near 34, while the Momentum indicator has lost its bearish strength, but holds near overbought levels, all of which supports a bearish continuation for this Friday.”
(Market News Provided by FXstreet)