EUR/USD 1 h chart, source: forexfactory.com
One of the major currency pair, EUR/USD has shown the pattern of 'sideways drifting and decline' recently. Though it raised its bottom but downward trend is still same, I think. Because in one-hour chart keeps the pattern of 'sideways drift and decline'.
The unemployment claims in the U.S. advanced than that in last week but it was worse than the expected value, it led the strong USD and the weak EUR. Euro, however, recovered to prior price and tried the turn of the trend.
In the more large size charts, however, weak Euro is explicit.
EUR/USD h4 chart, source:forexfactory.com
Current Euro is shown in 4-hour chart explicitly. After the peak in early May, EUR/USD has drawn the downward trend. There were drifting and some return, it continuously lowered the peaks and its trend is available still. In this chart, Euro return back marking lowest point but it is reasonable this moving is temporary and the downward trend is available, I guess.
EUR/USD daily chart source:forexfactory.com
Euro faces two ways of rebounding and updating the lowest price after April in the daily chart but there is the more possibility of decline.
Meanwhile, New York Federal Reserve President William Dudley said his opinion of the margin of interest rate raising due to the good economy circumstance in the United States. And he said the action would be shown in June or July.
His statements seems that the uncertainty of FOMC's decision is raised rather than the raise of the Fund Rate. Federal Reserved System, Fed implied the raise of the benchmark rate several times in this year but the uncertain global economic situation made Fed hesitated the action. And Dudley's speak means there are mixed opinion of hawkish and dovish and Fed doesn't have explicit opinion rather than the Fund Rate will be raised soon.
And I think the trade is determined on strong bias on USD due to the raising of the rate in June and short bias on USD due to the freeze of the rate, simultaneously.
No comments:
Post a Comment