EUR/USD recap for 04.01.2016
Euro started the year with its daily bar at 1.08651, made a high at 1.09459 and dropped hard towards 1.07810 for a close at 1.08318 after worse than expected German CPI data. Overall buying of green buck, strengthening it over-shadowed the performance of its rivals like the Cable, Aussie and Kiwi. Price will now have to make a push towards 1.07599 and breaking it, means that a new movement down forms towards 1.05666. Inflation and employment data will be the figures to watch for the Euro Zone this year, and weak CPIs and labor data won't be good for the euro. The range is broken anyways post-Draghi speech and moving on 1.05666 will erase any gains from that day when he didn't deliver what the market expected. Bullish sentiment casts a shadow on the euro strength, trade accordingly.