EUR/USD hit new lows January 3, 2017

The price has decreased significantly today and has resumed the yesterday’s bearish candle, has fallen aggressively and has reached new lows, has fallen below the1.0351 previous low, but unfortunately the seller’s weren’t stong enough to hold the rate below the static support. The Euro has managed to rebound and to recover on the short term, has increased versus the greenback even if the United States economic data have come in better today.
The EUR/USD maintains a bearish perspective on the short term as the US dollar index has managed to climb again above the 103.00 psychological level, the index maintains a bullish perspective, could increase further and could force the greenback to increase further as well. However we may have a minor decrease on the USDX before will increase further, could come to test the 102.54 level.
The Euro has decreased even if the German Unemployment Change has fallen unexpectedly lower, from -6K to -17K in November, has come better than the -5K estimate, while the German Prelim CPI rose by 0.7%, more than the 0.1% growth from the previous reading period. The French Prelim CPI has disappointed because has increased only by 0.3%, even if the estimate was 0.5%.
The US data have impressed today, so the greenback could increase further, the ISM Manufacturing PMI has increased from 53.2 to 54.7 points, beating the 53.7 estimate, has signalled that the expansion continues in the manufacturing sector, while the Final Manufacturing PMI rose from 54.2 to 54.3, has come better than the 54.2 forecast. The Construction Spending rose by 0.9%, more versus the 0.5% estimate, has continued to increase after the 0.5% growth from the former reporting period. The USD could climb higher versus the other major currencies as the ISM Manufacturing Prices have increased from 54.5 points to 65.5, the indicator has come unexpectedly higher becasue the estimate was only 55.6, I’ve said in other articles that the USD could increase again if the United States economic data will continue to come in better.

The rate has dropped sharply after the failure to stay above the 1.0521 static resistance, is going down also after the failure to reach the confluence area formed at the intersection between the median line (ml) of the descending pitchfork with the median line (ml) of the ascending pitchfork. Personally I would like if the price will come to retest the lower median line (lml) of the descending pitchfork before will drop much deeper, we could have a great selling opportunity on the short term.

You can see that now has come back to test the lower median line (lml) of the minor ascending pitchfork, actually is challenging this obstacle, remains to see where will close the day, because if will close above this level, then will attract the buyers again, but the perspective remains bearish.

Leave a Reply