Throughout October the EURUSD rallied well back above the key 1.11 level however just settled a little feeling some selling pressure from near 1.12. It made another run towards 1.12 before the fall earlier this month.
Most of the levels including 1.10, 1.11 and 1.12 have played a significant role in the last six months or alternating between providing support and resistance. At the start of October, the EURUSD dropped to a two year low below 1.09 and started to look precariously placed with no more obvious support levels below it, so it has done well to reverse and move as strongly as it has since then and remain above 1.10.
Throughout August it moved strongly lower from above 1.12, where it had numerous doji and pin bar candlesticks showed how enthusiastic the selling was during that period, and this level played a role again recently pushing the EURUSD lower. Throughout July the EURUSD fell sharply from above 1.14 down through the support at 1.11 and fall to its lowest levels in more than two years. After enjoying some support from 1.12, as expected this level stepped in as some resistance thwarting attempts to regain lost ground.
After heading up the International Monetary Fund for eight years, Christine Lagarde has officially taken up her role of president of the European Central Bank (ECB), and has made her debut speech at the European Banking Conference in Frankfurt. In it she called for the ECB to adopt a new policy mix.“Ongoing trade tensions and geopolitical uncertainties are contributing to a slowdown in world trade growth, which has more than halved since last year. This has in turn depressed global growth to its lowest level since the great financial crisis,” she said. “We are starting to see a global shift, driven mainly by emerging markets, from external demand to domestic demand, from investment to consumption and from manufacturing to services.” “World trade is being reordered as new technologies disrupt conventional supply chains and workplace organization, and as potential new risks emerge from climate change. All this obviously has implications for our external sector, not least because the euro area’s exports are intense in capital and intermediate goods,” she added.
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.