Key risk events today: RBA Gov Lowe Speaks; SNB Monetary Policy Assessment and Policy Rate; Philly Fed Manufacturing Index. (Previous analysis as well as outside sources – italics). EUR/USD: The euro ceded further ground against the US dollar Wednesday, shedding more than 100 points. The US dollar index, or DXY, remained on the offensive, reaching … Continue reading Thursday 19th March: Dollar Remains Bid at Multi-Year Highs.
Key risk events today: Canada Inflation; US Building Permits. (Previous analysis as well as outside sources – italics). EUR/USD: Europe’s shared currency went back to playing on the defensive against the US dollar Tuesday, shedding more than 1.50%, aided by a grim ZEW survey out of Germany. EUR/USD H4 dipped its toes south of the … Continue reading Wednesday 18th March: Dollar Index Remains Enthusiastic Though Testing Resistance at 99.62
Technically, EUR/USD remains within an interesting consolidation between 1.1223 and 1.1045 on the H4 scale. The upper boundary contains January’s opening level at 1.1222, a 38.2% Fibonacci resistance at 1.1223 and the 1.12 handle.
The 2019 yearly opening level from 1.1445 elbowed its way back into the spotlight last week, with bears reasserting their dominance and snapping a three-week winning streak. Down more than 180 points, price dipped its toes back within a descending channel formation (1.1569/1.1215), and is poised to revisit support priced in at 1.0873 (the 2016 yearly opening level) this week, in line with the primary trend, drifting south since 2018.
Europe’s single currency attempted a comeback against the buck off the 61.8% Fibonacci retracement ratio at 1.1053 on the H4 scale, a touch north of March’s opening level at 1.1045, after free falling from highs at 1.1333.
