FX Traders’ mid-week EURUSD fundamental & technical picture and what could change it- the bullish, the bearish and likely EURUSD direction.
The following is a partial summary of the conclusions from the fxempire.com weekly analysts’ meeting in which we cover outlooks for the major pairs for the coming week and beyond.
Summary
- Technical Outlook: Near term neutral, barring new revelations on coming ECB easing
- Fundamental Outlook: Neutral Near Term, as there is little on the calendar in the coming days to change speculation on ECB easing, never mind Fed policy.
- Trader Positioning: Easing is already priced in?
- Conclusions: Likely trading range for the coming days & why
EURUSD Mid-Week Technical Outlook: Testing Support On Bundesbank News
EURUSD Mid-Week Outlook: Technical And Fundamental Drivers for the Next 5 Trading Days
EURUSD Weekly Chart April 1 2012 To Present
KEY: 10 Week EMA Dark Blue, 20 WEEK EMA Yellow, 50 WEEK EMA Red, 100 WEEK EMA Light Blue, 200 WEEK EMA Violet, DOUBLE BOLLINGER BANDS: Normal 2 Standard Deviations Green, 1 Standard Deviation Orange. Green downtrend line from EURUSD peak of July 2008 to present, green uptrend line from August 2008 to present.
Source: MetaQuotes Software Corp, www.fxempire.com, www.thesensibleguidetoforex.com
02 May. 14 14.53
From Friday through Monday the pair stabilized into a tight trading range with support holding around 1.375, supported by the 100 day EMA, Â as the effects of June ECB easing speculation appeared to have been priced in for the moment.
Then on Tuesday it was reported that the one remaining source of meaningful opposition, Germany’s Bundesbank, was comfortable with the ECB announcing new easing measures at its June meeting.
That was enough to start the pair’s next leg lower. As of midday Wednesday support around 1.37 held firm, and the pair began a recovery bounce, due to a combination of:
