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26 Jan 2015
EUR/USD pressured to new weekly lows
FXStreet (Guatemala) - EUR/USD is currently trading at 1.1170 and remains under pressure having opened with a bearish gap to challenge and exceed last weeks closing lows and exceeding weekly losses.
The ECB has dived head first in the QE to encourage markets to take yields and the euro to an equilibrium, as analysts at TD Securities explained, that returns inflation back to target and supports growth. "This means a lower level of Eurozone and global rates for even longer, with negative net supply in EGBs meaning significant outperformance of long bonds, and FX depreciation which we think will take EURUSD to 0.96 by year-end."
EUR/USD bearish bias
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the overall bearish momentum is poised to extend further this week, and she said the short term picture favors the downside. Further out, on the 4 hours chart, she explained that it also shows a strong bearish momentum. "Coming from indicators with RSI retracing from the 30 level and supporting further declines, particularly on a break below the mentioned record low."
The ECB has dived head first in the QE to encourage markets to take yields and the euro to an equilibrium, as analysts at TD Securities explained, that returns inflation back to target and supports growth. "This means a lower level of Eurozone and global rates for even longer, with negative net supply in EGBs meaning significant outperformance of long bonds, and FX depreciation which we think will take EURUSD to 0.96 by year-end."
EUR/USD bearish bias
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the overall bearish momentum is poised to extend further this week, and she said the short term picture favors the downside. Further out, on the 4 hours chart, she explained that it also shows a strong bearish momentum. "Coming from indicators with RSI retracing from the 30 level and supporting further declines, particularly on a break below the mentioned record low."