the daily chartist

EUR/USD recap for 09.10.2015

published 4 years ago

 EUR/USD continues to impress and gains ground further, passing 1.12897 and moving deeper inside the sell zone. There is no real catalyst behind yesterdays moves or any big headlines, but Draghi and Visco's comments highlight the lack of consensus about more ECB easing. The final bid before the close was most impressive as this is the best weekly close since August 21. Highlights from Draghi's comment:

  • Emerging markets pose renewed risks;
  • Risks to growth outlook remain to the downside;
  • Inflation is seen rising toward the year end on base effect;
  • ECB will closely monitor price developments;
  • ECB is ready to use all the instruments available;
  • Can adjust QE size, composition and duration;
  • Countries with high debt must be alert to rate rises

 If euro strength remains, price will move beyond 1.13544 where it currently is on the resistance line towards 1.14 and 1.14514. Beware of any corrections and buy the dip.