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31 Dec 2014
EUR/USD to remain flat in the short term, and bearish long term – FXStreet
FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, the longer term picture for the EUR/USD pair remains bearish, with Eurozone facing high unemployment, historical low inflation, and on the verge of further monetary stimuls by the ECB.
Key Quotes
“The EUR/USD pair is set to close the year around its low, established at 1.2123 this week. There had been many events affecting the pair but the one that prevailed, and will likely do so over the first half of 2015, is the imbalance between both Central Banks policies, amid the economic situation.”
“The US may not be in its best shape ever, but the country is emerging from its crisis, with employment is at the best level in years, and the FED dumped its facility programs a couple months ago.”
“By opposition, Europe unemployment is at its highs, inflation at historical lows, and the ECB is in the verge of begin some sort of monetary stimulus, as latest measures and record low rates had done little to help.”
“The intraday outlook is flat, with 1 and 4 hours chart giving no clear directional signs amid the absent volumes across the different markets; but the longer term picture continues to favor the downside.”
“Next critical support on a break below the year low stands at 1.2042, July 2012 monthly low, whilst a break below the level may see the pair extending down to 1.1900 area.”
“The upside seems quite limited, and despite not seen at the time being, upward moves up to the 1.2600 figure should be understood as barely corrective.”
Key Quotes
“The EUR/USD pair is set to close the year around its low, established at 1.2123 this week. There had been many events affecting the pair but the one that prevailed, and will likely do so over the first half of 2015, is the imbalance between both Central Banks policies, amid the economic situation.”
“The US may not be in its best shape ever, but the country is emerging from its crisis, with employment is at the best level in years, and the FED dumped its facility programs a couple months ago.”
“By opposition, Europe unemployment is at its highs, inflation at historical lows, and the ECB is in the verge of begin some sort of monetary stimulus, as latest measures and record low rates had done little to help.”
“The intraday outlook is flat, with 1 and 4 hours chart giving no clear directional signs amid the absent volumes across the different markets; but the longer term picture continues to favor the downside.”
“Next critical support on a break below the year low stands at 1.2042, July 2012 monthly low, whilst a break below the level may see the pair extending down to 1.1900 area.”
“The upside seems quite limited, and despite not seen at the time being, upward moves up to the 1.2600 figure should be understood as barely corrective.”