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EUR/USD Taking out 1.3150

EUR/USD is wrapping up the week continuing its bearish outlook. It consolidated throughout the week roughly between 1.3150 and 1.3220. But as you can see in the 4H chart, the prevalent bias was still bearish based on price action, moving averages, and the RSI reading.

You can also see the latest 4H candle in the chart breaking below the 1.3150 handle, signaling bearish continuation.

(EUR/USD 4H Chart)

The latest fundamental factor for the Euro was the Euro Area CPI inflation, which came in at an annual rate of 0.3% in August. This is an early estimate, which was in line with forecasts. The July reading was 0.4%.


(click to enlarge; source: forexfactory.com)

There is a definite trend, and clearly deflationary pressure since 2012. The ECB is likely going to have address this issue by implementing some kind of stimulus, like QE. The prospect of this will continue to weigh on the euro. By the time the ECB finally implements QE, then the EUR might make one last exhaustion dip, and start consolidating.