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EUR/USD: greenback taking charge - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that a bout of positive US data, alongside with FED's Yellen stating that the FOMC thought it could be appropriate to move in December, but that no decision was made, sent the EUR/USD pair to its lowest since late July.

Key Quotes:

"Data were clearly supportive of the greenback, as the ADP private employment survey showed that the economy managed to add 182K new jobs during October, slightly better than the expected 180K. The trade gap in September, shank to a 7-month low, printing a deficit of $40.8 billion from a revised $48 billion in August, whilst the Markit Services PMI beat expectations by resulting at 54.8."

"The common currency was already under pressure ahead of the American opening, as late Tuesday, Mario Draghi from the ECB reaffirmed that that the degree of monetary policy accommodation needs to be re-examined next December."

"The pair sunk to 1.0844 and trades a few pips above the level by the end of the day, maintaining a strong bearish tone, although extremely oversold in the short term."

"According to the 1 hour chart, however, there are no signs that the pair may correct higher, given that the technical indicators continue heading south in extreme levels, whilst the 20 SMA has accelerated its decline above the current level."

"In the 4 hours chart, the 20 SMA has turned lower well above the current level, whilst the Momentum indicator has lost its bearish strength well below the 100 level, whilst the RSI indicator hovers around 25. The pair has posted its lowest since late May at 1.0818, which means large stops could stand below it and therefore, if those got triggered, fuel the decline."

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