the daily chartist

EUR/USD recap for 18.09.2015

published 4 years ago

 All started well with a high opening at 1.14288 and the euro made a 30 pip move up towards a high at 1.14598. Afterwards - 155 pips move down to the lowest point for the day at 1.12688 and a close at 1.12813. The euro was cruising in a upswing in the US session, but everything went downfall as we progressed in-to the US session and the EU close as stops were triggered and the bears found a way to brake trough. Seems that the aftermath of the FED has been priced-in, seems that US holding the rates lays out the way for some risk trades in stocks and carry trades. Bond market is on its way stabilizing and the Treasury Bund spread should normalize, thus leading to an renewed and accelerated selling in the euro to fund the carry trades as they begin. The candle from yesterday is big bearish engulfing candle, which may indicate the upcoming shift for the euro heading down. Still the daily uptrend line is holding and it will be tested at 1.12379 and if broken - the price my search for a support at 1.11436, 1.10767 and so until the next FOMC meeting.