Signs of an economic revival in China have raised hopes that Beijing’s targeted measures to bolster growth are having an impact but a slowdown in the euro zone will increase expectations of policy easing there.
EURUSD is currently finding support at the bottom of the rising channel on the daily time frame while stochastic is indicating deeply oversold conditions.
The EURUSD pair fell during the session on Wednesday, breaking below the 1.36 level towards the end of the day.
After two days of European Central Bank (ECB) President Mario Draghi comments the EURUSD remains weighted down.
The EUR/USD pair tried to rally during the session on Thursday, mainly predicated upon the fact that the statement from the ECB failed to mention any type of immediate actions to quell the rise of the Euro. The 1.40 level has been rather resistive, and on top of that the European Central Bank has suggested that the 1.40 level is in fact a bit too rich for their liking.
The EURUSD pair fell during the session on Monday, gapping lower as ECB members suggested that perhaps more monetary stimulus could come into play as the Euro is overvalued in their opinion.
The EUR/USD pair went back and forth during the session on Monday, as we continue to struggle with the downtrend line that forms the channel going lower from the start of the financial crisis.
If equity bears are having a tough time at present, euro bears have had a torrid time over the last few years, with each move lower acclaimed as the end of the single currency, which then promptly rises and continues to survive.
As we begin another the first full trading week of November traders are likely to maintain their focus on U.S. economic data reports.
Morning Coffee Break – Friday March 22 As we get ready to start the final session of the week traders will be without a doubt will be focused on the developments in Cyprus. Or should I say lack of development as Cyprus leaders’ hopes for a Russia bailout loan has fallen part and are going into the weekend with no deal and the European Central Bank deadline set for Monday
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