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28 Jan 2015
EUR/USD focus remains on Fed’s statement – FXStreet
FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, the focus for EUR/USD remains on the tone of the Fed’s statement today, noting that a hawkish tone might lead USD to resume its bullish trend.
Key Quotes
“[..] focus will be in the tone of the statement and any subtle change in wording: if the FED expresses concerns over the global slowdown that may be understood as a delay in rate hikes and hit the greenback badly across the board, considering longs stand at record highs and the currency is extremely overbought against many rivals.”
“If however the tone is confident and slightly hawkish, the greenback will likely resume its bullish trend.”
“Daily basis, the pair has so far established a lower high at 1.1381, and it would take a price acceleration through it to see the pair extending up to 1.1440, 61.8% retracement of the same rally.”
“The immediate support comes at 1.1306, 38.2% retracement of the same rally, with a break below it exposing the 1.1240/50 price zone.”
Key Quotes
“[..] focus will be in the tone of the statement and any subtle change in wording: if the FED expresses concerns over the global slowdown that may be understood as a delay in rate hikes and hit the greenback badly across the board, considering longs stand at record highs and the currency is extremely overbought against many rivals.”
“If however the tone is confident and slightly hawkish, the greenback will likely resume its bullish trend.”
“Daily basis, the pair has so far established a lower high at 1.1381, and it would take a price acceleration through it to see the pair extending up to 1.1440, 61.8% retracement of the same rally.”
“The immediate support comes at 1.1306, 38.2% retracement of the same rally, with a break below it exposing the 1.1240/50 price zone.”