Back
9 Jan 2015
EUR further decline likely – Varengold
FXStreet (Barcelona) - According to The Varengold Bank Research Team, the support at 1.1766 is currently holding the pair well but a further decline is likely for EUR/USD.
Key Quotes
“A slump in German industrial orders in November and a drop in euro zone consumer inflation expectations reinforced bearish views of the euro as the U.S. data also helped push the single currency to a nine-year low, for a fifth day of losses. The euro wallowed near a nine-year low on Friday on growing expectations the European Central Bank will embark on quantitative easing, while the dollar held firm before U.S. jobs data that could cement the case for a rate hike by the Federal Reserve.”
“ECB President Mario Draghi said the bank's Governing Council stands ready to take unconventional measures if needed to stem a prolonged period of low inflation."
"The euro stood at $1.1792, having hit $1.1754 on Thursday as traders grew more convinced that the ECB might start buying euro zone sovereign debt as soon as this month.”
“Since June the bears took control over this currency pair and the euro experienced a sharp decline versus the USD. As we already said on Monday this week, the dowfall of the euro seems hard to break and thus we saw a further decline of the currency during the last trading sessions."
"The EUR has now dropped to the support level of 1.1766. At the moment the support level seems to hold but a further decline may be likely although the indicators show that the euro is highly oversold.”
Key Quotes
“A slump in German industrial orders in November and a drop in euro zone consumer inflation expectations reinforced bearish views of the euro as the U.S. data also helped push the single currency to a nine-year low, for a fifth day of losses. The euro wallowed near a nine-year low on Friday on growing expectations the European Central Bank will embark on quantitative easing, while the dollar held firm before U.S. jobs data that could cement the case for a rate hike by the Federal Reserve.”
“ECB President Mario Draghi said the bank's Governing Council stands ready to take unconventional measures if needed to stem a prolonged period of low inflation."
"The euro stood at $1.1792, having hit $1.1754 on Thursday as traders grew more convinced that the ECB might start buying euro zone sovereign debt as soon as this month.”
“Since June the bears took control over this currency pair and the euro experienced a sharp decline versus the USD. As we already said on Monday this week, the dowfall of the euro seems hard to break and thus we saw a further decline of the currency during the last trading sessions."
"The EUR has now dropped to the support level of 1.1766. At the moment the support level seems to hold but a further decline may be likely although the indicators show that the euro is highly oversold.”