EURUSD, H1
EURUSD has drifted about 40 pips lower amid a broader ebb in the Euro. A one-week high was left at 1.1367 before the run lower. A key analyst, Action Economics wrote earlier, “We see the pair as remaining in the broader downtrend that’s been in development since late January”. Indeed, the daily 50-period and 20-period moving average was last breached September 23 at 1.1642 and has shown little signs of turning north. Recent US data, not least the warmer readings on CPI and PPI, along with the Fed’s policy guidance following last week’s FOMC meeting, have fanned expectations for a resumption in Fed tightening at December’s policy meeting. This juxtaposes signs of flagging economic growth momentum in the Eurozone, where there are also concerns about the Eurosceptic political movement. Nothing in Mario Draghi’s speech this morning suggested that this trend was coming to an end or even slowing down. S3 now sits below 1.1200.
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Stuart Cowell
Head Market Analyst
HotForex
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