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13 Mar 2015
EUR/USD: Choppy consolidation expected on Friday - FXCharts
FXStreet (Bali) - According to Jim Langlands, Founder at FXCharts, some choppy consolidation in EUR/USD looks to be the theme going into the weekend.
Key Quotes
"The Euro recovered today as profit taking finally set in. After setting a new trend low at 1.0493 in late Asian trade, it climbed to a high of 1.0683 and before reverting to the middle of the range on the back of some mixed data from both the EU and the US. The US retail sales were a major disappointment, falling 0.6% (exp +0.3%) in February while Initial Jobless claims dropped -36k to 289k, better than expectation of 306k. Earlier in the day, the EU industrial production dropped -0.1% mm in January, while German CPI was finalized at 0.1% yy in February."
"Today will be rather thin as far as data is concerned, with only the US PPI to drive direction, so some choppy consolidation looks to be the theme going into the weekend."
"When the Euro hit its lows today, the DXY touched 100.00 (high 100.06) which proved too much for it at the first attempt and it has since fallen sharply to 98.65 before settling at 99.35/40.Right now at close to 1.0600, the 4 hour charts for the EurUsd do appear to have further upside potential and we could see a return to the session high, beyond which there is Fibo resistance at 1.0700 (23.6% of 1.1378/1.0493) and the 100 HMA at 1.0720. Beyond there would see potential for an acceleration to the minor descending trend resistance at 1.0830 which lines up with the next Fibo resistance (38.2%) and should see good selling interest."
Key Quotes
"The Euro recovered today as profit taking finally set in. After setting a new trend low at 1.0493 in late Asian trade, it climbed to a high of 1.0683 and before reverting to the middle of the range on the back of some mixed data from both the EU and the US. The US retail sales were a major disappointment, falling 0.6% (exp +0.3%) in February while Initial Jobless claims dropped -36k to 289k, better than expectation of 306k. Earlier in the day, the EU industrial production dropped -0.1% mm in January, while German CPI was finalized at 0.1% yy in February."
"Today will be rather thin as far as data is concerned, with only the US PPI to drive direction, so some choppy consolidation looks to be the theme going into the weekend."
"When the Euro hit its lows today, the DXY touched 100.00 (high 100.06) which proved too much for it at the first attempt and it has since fallen sharply to 98.65 before settling at 99.35/40.Right now at close to 1.0600, the 4 hour charts for the EurUsd do appear to have further upside potential and we could see a return to the session high, beyond which there is Fibo resistance at 1.0700 (23.6% of 1.1378/1.0493) and the 100 HMA at 1.0720. Beyond there would see potential for an acceleration to the minor descending trend resistance at 1.0830 which lines up with the next Fibo resistance (38.2%) and should see good selling interest."