Back
12 Dec 2014
EUR likely to test 1.27 in the short-run – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the EUR/USD pair has bounced off the 200-month average thrice now in the last four years, above which buyers are likely to step in to push the pair near 1.27-1.2750 region in the short-term.
Key Quotes
“The EUR/USD pair has been remarkably resilient throughout this week, despite the risk aversion in the financial markets across the globe. On a weekly basis, the pair is likely to finish almost 1.3% higher. Meanwhile, the Yen, a traditional safe haven, is likely to end the week higher by 2.58% against the US dollar.”
“The US Fed may create more panic in the financial markets, if it decides to hint at a high possibility of an interest rate hike in 2015. Again, in such case, the EUR may remain supported around 1.2240-1.2300 levels despite rising Treasury yields, mainly due to rise in risk aversion.”
“If the Fed does turn dovish with regards to rate hikes, the consequent slide in the treasury yields shall lead to a broad based weakness in the US dollar. In such a case, the EUR too, stands to gain.”
“The pair has bounced-off from the 200-month average, located at 1.2240, for the third-time in last four years. So long as the pair trades above the 200-month average, the technical buying is likely to set-in on dips.”
“On daily charts, the RSI is likely to end above 50.00 levels today, opening doors for further upside in the pair. On weekly charts, the positive divergence between RSI and EUR/USD has been confirmed. Thus, the pair is likely to test 1.27-1.2750 levels till mid-January 2015.”
Key Quotes
“The EUR/USD pair has been remarkably resilient throughout this week, despite the risk aversion in the financial markets across the globe. On a weekly basis, the pair is likely to finish almost 1.3% higher. Meanwhile, the Yen, a traditional safe haven, is likely to end the week higher by 2.58% against the US dollar.”
“The US Fed may create more panic in the financial markets, if it decides to hint at a high possibility of an interest rate hike in 2015. Again, in such case, the EUR may remain supported around 1.2240-1.2300 levels despite rising Treasury yields, mainly due to rise in risk aversion.”
“If the Fed does turn dovish with regards to rate hikes, the consequent slide in the treasury yields shall lead to a broad based weakness in the US dollar. In such a case, the EUR too, stands to gain.”
“The pair has bounced-off from the 200-month average, located at 1.2240, for the third-time in last four years. So long as the pair trades above the 200-month average, the technical buying is likely to set-in on dips.”
“On daily charts, the RSI is likely to end above 50.00 levels today, opening doors for further upside in the pair. On weekly charts, the positive divergence between RSI and EUR/USD has been confirmed. Thus, the pair is likely to test 1.27-1.2750 levels till mid-January 2015.”