{"id":108235,"date":"2017-06-29T06:49:34","date_gmt":"2017-06-29T10:49:34","guid":{"rendered":"http:\/\/countingpips.com\/?p=108235"},"modified":"2017-06-29T06:49:34","modified_gmt":"2017-06-29T10:49:34","slug":"eurusd-buyers-have-tested-1-14","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/eurusd-buyers-have-tested-1-14\/","title":{"rendered":"EURUSD: buyers have tested 1.14"},"content":{"rendered":"<div id=\"inves-2610719625\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 29, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>Trading on the euro\/dollar pair closed up on Wednesday. As the dollar weakened across the market, the euro came closer to 1.14 level, which has been tested in Asia.<\/p>\n<p>At the ECB forum in Portugal, the heads of the major central banks provided support to their respective national currencies with their speeches. Bank of England governor Mark Carney hinted at the possibility of tightening monetary policy. Traders took these comments as a sign that an interest rate hike is coming. The pound responded with a 140 pip surge.<\/p>\n<p>The head of the Bank of Canada, Steven Poloz, said that the reduction in interest rates imposed in 2015 had served its purpose. He pointed to Canada\u2019s high economic growth rate in the first quarter. Traders again took this as a sign that interest rates would be raised in the near future. The Canadian dollar rose by 100 pips, and ended the day 140 pips up. The US dollar is retreating on all fronts.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Germany: Gfk consumer sentiment survey (Jun);<\/li>\n<li>11:30 UK: consumer credit (May), M4 money supply (May), mortgage approvals (May);<\/li>\n<li>12:30 Eurozone: ECB member Weidmann\u2019s speech;<\/li>\n<li>15:00 Germany: CPI (Jun);<\/li>\n<li>15:30 USA: GDP annualised (Q1), GDP price index (Q1), initial jobless claims (23 Jun);<\/li>\n<li>20:00 USA: FOMC member Bullard\u2019s speech.<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/eur_290617_5954a85f4a9c6.png\" alt=\"\" \/><\/p>\n<p align=\"center\">EURUSD rate on the hourly. Source: TradingView.<\/p><div id=\"inves-4225783072\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>The price moved with the U3 line for 20 hours until the ECB announced that the market had misinterpreted Draghi\u2019s comments at the forum the previous day. He apparently didn\u2019t mean that the stimulation program would soon be reversed. Nevertheless, buyers bought euros after a drop to 1.1292 on the back of a weakening dollar.<\/p>\n<p>In Asia, the price recovered to 1.1419. There\u2019s a strong resistance around 1.1445 \u2013 1.1470. At the time of writing, the euro is trading at 1.1396. Judging by Carney\u2019s and Poloz\u2019s comments, buyers won\u2019t rest until they reach this price range.<\/p>\n<p>Some bearish divergences have formed on the CCI and AO indicators. Technical analysis suggests a downwards correction, but buyers are set on further strengthening the euro.<\/p>\n<p>I\u2019m expecting to see a correction to 1.1380, followed by growth to 1.1425. Then, we\u2019ll need to wait and see what kind of rebound occurs in terms of duration and amplitude. It might turn out that the downwards correction marks the beginning of a double top model, and maybe after testing 1.1425 and some sideways movement, growth will continue to 1.1470.<\/p>\n<p>If you want some alternative scenarios, take a look at the top left of the chart above. The black lines mark the current price movements, while they grey ones are my forecasts. The bullish trend is strong, so rebounds will be limited.<\/p>\n<p>Scenario 1: Downwards correction until trading closes to 1.1365.<\/p>\n<p>Scenario 2: A head and shoulders model peaking at 1.1445.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/20324_29062017\/\">EURUSD: buyers have tested 1.14<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: Trading on the euro\/dollar pair closed up on Wednesday. As the dollar weakened across the market, the euro came closer to 1.14 level, which has been tested in Asia. At the ECB forum in Portugal, the heads of the major central banks provided support to their respective national currencies with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108235","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108235"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108235\/revisions"}],"predecessor-version":[{"id":108236,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108235\/revisions\/108236"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}