Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD surged yesterday capping a two-day 300 pip advance amidst signs that recent declines may have been excessive. On Monday the EURUSD bounced back from 1.1097 to reach as high as 1.1295 and the market continued to push the Euro higher yesterday with the pair climbing above 1.14. The key 1.1500 level could define the near term direction. If the pair can significantly break above the 1.1500 area this may set the market action up for an extension higher. A failure to move above 1.1500 or find support and hold above the level may lead to a further swing lower. The weekly RSI has moved up from a reading of 20.0 and is up at 29.0 during this week's 300 pip rally. The RSI could cross over above 30.0 if the uptrend extends and this may add fuel to the EURUSD strength. The Euro, GBP and USD have been the strongest currencies this week and the Yen has been stable. The GBPUSD has risen from the 1.50 handle at the start of the week to high of 1.5223 and has moved up 700 pips from 1.3150 to 1.3850 in two trading days against the CHF and has strengthened against the CAD, AUD and to a lesser extent the Yen. The Euro has also strengthened versus the USD,CHF,CAD, AUD, YEN and is up over 1% against the Sterling which is the second best performing amongst majors this week.
Overnight Australian CPI declined from 0.5% to 0.2% below forecasts of 0.3%. At 15:30GMT in the US Crude Oil Inventories will be released with further poor data expected for Crude for the week just passed. Last Wednesday data showed that there was an increase 10.1M week in stockpiles and this week is set to show a further build of 4.2M barrels this week. At 19:00GMT FOMC Statement and Federal Funds Rate will create a buzz in markets and lead to outsized moves and volatility in fx, stock and commodity markets. With the European QE and general weakness in global markets some commentators are forecasting a delay in the scheduled US interest rate rises. Any such announcement will likely weaken the value of the USD. Next up an hour later at 20:00GMT NZD Official Cash Rate and RBNZ State Statement.
EURUSD Support areas include 1.13, 1.12, 1.1150 1.1250, 1.1200, 1.1175, 1.1100, 1.10, 1.0950. Resistance levels above are at 1.14, 1.15, 1.16,1.1650,1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 5 Minute Chart
EURUSD 30 Minute Chart
EURUSD Daily Chart
EURUSD Pivot Point Table