EUR/USD consolidation phase, bullish on greenback

By FXStreet FXStreet (Guatemala) – EUR/USD is going anywhere very fast, drawn to the 200 SMA on the hourly chart that resides at 1.1367 currently and trades either side of it in a narrow range waiting for the outcome of the ECB.

“The ECB is merely buying time to get a better grip on underlying developments. We stick to our view that an expansion/extension of the asset purchase program is the most likely next step by the ECB, but we believe this will take place in December at the earliest,” explained analysts at Rabobank.

Meanwhile, given that is the case, we maybe in a consolidative phase with a lack of forces in either direction, while the Fed is also expected to postpone ideas of a hike and potentially until the end of Q1 2016. However, analysts at Goldman Sachs are looking for a Dec hike. And, analysts at Westpac suggest the greenback is now on a bullish track.

EUR/USD levels

Technically, failures last week at the 1.1440/72 band (May, June and September highs, the 55 week ma and the 2014-2015 downtrend), leaves the pair in a bearish phase. The 1.1260/51 cloud lows is now open for a testing and the September …read more

Source:: FX Street