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12 Mar 2015
EUR/USD might see another 100 pip fall today – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that with EUR trending soft as European yields fall, a disappointing German CPI might trigger another 100-pip fall in the pair.
Key Quotes
“The EUR/USD pair suffered another 100-odd pip fall on Wednesday, as it fell to 1.05 levels on the third day of the European Central Bank’s QE program. The German 10-year yield fell to a fresh record low of 0.192%. Germany has negative yields on bonds up to 7-year maturity, while the 8-year and 9-year yields are inching closer to zero levels.”
“The pair could extend the drop below 1.05 levels, if the yields continue to sink in Germany.”
“The final German CPI reading for February due for release today is likely to confirm prices rose 0.1% year-on-year. A downward revision of the CPI could push the German yields at long-end closer to zero levels. In such a case another 100-pip fall in the EUR/USD from the current level of 1.0522 is quite possible.”
“On the hourly charts, the RSI has once again formed a bullish divergence, while the RSI is deep into the oversold territory on the daily and 4-hourly charts.”
“An unchanged/better-than-expected German CPI print could trigger a short covering rally to 1.0570. However, the pair is likely to be sold into rallies ahead of the Advance retail sales data in the US.”
“A sharp rise in the Febraury retail sales figure could push the pair down to 1.04 levels. On the other hand, a weak data may result in the pair rallying to 1.06-1.0626 levels.”
Key Quotes
“The EUR/USD pair suffered another 100-odd pip fall on Wednesday, as it fell to 1.05 levels on the third day of the European Central Bank’s QE program. The German 10-year yield fell to a fresh record low of 0.192%. Germany has negative yields on bonds up to 7-year maturity, while the 8-year and 9-year yields are inching closer to zero levels.”
“The pair could extend the drop below 1.05 levels, if the yields continue to sink in Germany.”
“The final German CPI reading for February due for release today is likely to confirm prices rose 0.1% year-on-year. A downward revision of the CPI could push the German yields at long-end closer to zero levels. In such a case another 100-pip fall in the EUR/USD from the current level of 1.0522 is quite possible.”
“On the hourly charts, the RSI has once again formed a bullish divergence, while the RSI is deep into the oversold territory on the daily and 4-hourly charts.”
“An unchanged/better-than-expected German CPI print could trigger a short covering rally to 1.0570. However, the pair is likely to be sold into rallies ahead of the Advance retail sales data in the US.”
“A sharp rise in the Febraury retail sales figure could push the pair down to 1.04 levels. On the other hand, a weak data may result in the pair rallying to 1.06-1.0626 levels.”