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7 Jan 2015
EUR/USD sets new 9-yr low at 1.1840
FXStreet (Bali) - EUR/USD has sold off over half a cent in the iliquid NY-Tokyo transition, with the rate printing a fresh 9-year low at 1.1840 from 1.1887 NY close.
Downbeat fundamental readings in Europe on Tuesday kept the pressure on the ECB to deliver sovereign QE in January, with soft US data earlier today - ISM non manufacturing PMI, Markit Services PMI and Factory orders all disappointed - failing to get the Euro out of trouble. European inflation and FOMC Minutes are now the next big focus for the market.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical outlook continues to favor the downside, as the 1 hour chart shows price struggling around a flat 20 SMA but indicators heading lower in negative territory. In the 4 hours chart, the 20 SMA acts as dynamic resistance currently around the 1.1970 price zone. Risk of further declines will now increase with a break below 1.1865 - seen - towards the 1.1800 figure."
Downbeat fundamental readings in Europe on Tuesday kept the pressure on the ECB to deliver sovereign QE in January, with soft US data earlier today - ISM non manufacturing PMI, Markit Services PMI and Factory orders all disappointed - failing to get the Euro out of trouble. European inflation and FOMC Minutes are now the next big focus for the market.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical outlook continues to favor the downside, as the 1 hour chart shows price struggling around a flat 20 SMA but indicators heading lower in negative territory. In the 4 hours chart, the 20 SMA acts as dynamic resistance currently around the 1.1970 price zone. Risk of further declines will now increase with a break below 1.1865 - seen - towards the 1.1800 figure."