The EUR/USD has decreased sharply after the early morning rally, the rate has reached fresh new lows and looks determined to drop much deeper because is very heavy right now. The rate has rallied in the morning because Donald Trump has won the elections, the greenback was pushed lower by the USDX’s massive drop, the index has edged lower in the first hours of the day and has reached 5-week low, at 95.87 level, but the bulls have stepped in again and have forced the rate to increase. The USDX is trading right now above the 98.00 psychological level, has resumed the last tow days increase , could climb even higher if will stay much above the 97.58 static support.
The EUR/USD was moved by fundamental factors, we had high volatility on all currency pairs today, not only on the EUR/USD. The USD remains a powerful despite the US election result, the greenback could still dominate the currency market if the USDX will increase further, remains how the FED will act after the Presidential Elections, the USD will remain strong only if the Federal Reserve will hike the rate in December, another delay will harm the US currency, which could start another larger decrease.
Technically the USD is expected to increase further versus most of its rivals after a minor decrease, personally I’m expecting to see another minor decrease on the USDX after today’s volatility.
The USD has received a helping hand also from the United States Final Wholesale Inventories, which has increased only by 0.1%, less than the 0.2% estimate, the US has released also the Crude Oil Inventories, but the indicator didn’t have a significant impact.

EURUSDd-3

You can see on the Daily chart that the price has increased significantly in the early morning, has climbed as much as 1.1298 level, but the sellers have taken the full control in the last hours of the Asian session and have driven the rate towards new lows. The price is approaching the 1.0908 static support, which could stop the bearish movement, technically the rate is expected to drop further, the next major downside targets are at the median line (ml) of the descending pitchfork and at the fist warning line (Wl1) of the ascending pitchfork, the rate could be attracted by the confluence area formed between these two support levels. The rate is expected to drop further as long as is located inside the minor descending pitchfork and because has failed once again to close above the sliding parallel line (descending dotted line).

EURUSDh-3

The price has erased the morning gains, the rate is trading in the red on the short term, is very heavy, but personally I’m expecting to see a rebound after the impressive drop, the rate could come back higher to retest the upper median line (uml) of the descending pitchfork before will resume the bearish movement. We’ll have a broader drop only if the price will take out the support from the first warning line (Wl1).

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.