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17 Sep 2015
EUR/USD testing 1.13 in early Tokyo dealing
FXStreet (Bali) - EUR/USD is picking up some upward momentum in the first minutes of Tokyo trading, currently being dealt around the 1.13 handle, having recovered from a late US dip towards 1.1275, with the bigger picture turned more bullish after a vigorous bounce overnight, following a mildly disappointing US CPI numbers.
Risk appetite improves, Euro defies logic
While the risk environment continued to support the bid tone for risk-on associated currencies such as the Aussie during Wednesday, which wouldn't have assisted the EUR/USD rise unless due to broad-based USD selling as main driver, as we saw, the current retracement in the Nikkei 225 off highs, together with last minute unwind of positions/position squaring ahead of the FOMC monetary policy decision (due at 2GMT - 30% implied probability of rate hikes based on CME Fed funds), may have contributed to the latest 20 odd pips jump in the Euro.
EUR/USD technicals
Valeria Bednarik, Chief Analyst at FXStreet, shares her view on the EUR/USD, noting: "The 1 hour chart shows that the price is now around its 100 SMA, whilst the technical indicators lost upward potential, and turned lower, approaching now their mid-lines."
"In the 4 hours chart, a neutral stance prevails, with the price unable to establish above a flat 20 SMA, and the technical indicators stuck around their mid-lines. The upcoming direction depends solely on FED's decision now, with the dollar seen appreciating should the Central Bank pull the trigger", Valeria adds.
Risk appetite improves, Euro defies logic
While the risk environment continued to support the bid tone for risk-on associated currencies such as the Aussie during Wednesday, which wouldn't have assisted the EUR/USD rise unless due to broad-based USD selling as main driver, as we saw, the current retracement in the Nikkei 225 off highs, together with last minute unwind of positions/position squaring ahead of the FOMC monetary policy decision (due at 2GMT - 30% implied probability of rate hikes based on CME Fed funds), may have contributed to the latest 20 odd pips jump in the Euro.
EUR/USD technicals
Valeria Bednarik, Chief Analyst at FXStreet, shares her view on the EUR/USD, noting: "The 1 hour chart shows that the price is now around its 100 SMA, whilst the technical indicators lost upward potential, and turned lower, approaching now their mid-lines."
"In the 4 hours chart, a neutral stance prevails, with the price unable to establish above a flat 20 SMA, and the technical indicators stuck around their mid-lines. The upcoming direction depends solely on FED's decision now, with the dollar seen appreciating should the Central Bank pull the trigger", Valeria adds.