EUR/USD: further gains expected – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the dollar ended the day slightly lower against most of its major rivals, with a strong decline in European and American stocks leading the way in a quiet trading journey.

Key Quotes:

“There were a few fundamental releases, starting early Europe with the German trade balance posting a surplus of €22.9 billion in September 2015, whilst exports and imports beating expectations and increasing by 2.6% and 3.6% respectively. Prospects of a US rate hike next December have finally taken their toll over worldwide stocks, with bonds also plunging and yields rising.

The EUR/USD pair seesawed between 1.0718 and 1.0789, and the short term picture suggests that the pair is ready to resume its decline, as in the 1 hour chart, the technical indicators have erased all of their oversold readings, and after entering positive territory, are now heading south below their mid-lines. In the same chart, the price hovers around a flat 20 SMA, whilst remains far below the 100 and 200 SMAs.

In the 4 hours chart, the 20 SMA has extended its decline above the current price and now offers a dynamic resistance around 1.0815, whilst the …read more

Source:: FX Street