{"id":128009,"date":"2018-06-07T07:45:27","date_gmt":"2018-06-07T11:45:27","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=128009"},"modified":"2018-06-07T07:02:59","modified_gmt":"2018-06-07T11:02:59","slug":"eurusd-euro-in-demand-over-expectations-of-qe-reversal","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/06\/eurusd-euro-in-demand-over-expectations-of-qe-reversal\/","title":{"rendered":"EURUSD: euro in demand over expectations of QE reversal"},"content":{"rendered":"<div id=\"inves-1186499622\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 7, 2018<\/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>On Wednesday the 6<sup>th<\/sup>\u00a0of June, trading on the euro closed up. Traders were active at the beginning of the European session. There was a surge in volatility during ECB chief economist Peter Praet\u2019s speech.\u00a0<a href=\"https:\/\/www.reuters.com\/article\/us-ecb-policy-praet\/ecb-to-debate-ending-bond-buys-next-week-praet-idUSKCN1J20M3?il=0\" target=\"_blank\" rel=\"noopener\">He confirmed<\/a>\u00a0that the ECB\u2019s executive board will discuss when to end the bank\u2019s bond-buying program. The exchange rate went up to 1.1796 on the back of this. The session\u2019s bullish trend was helped along by the euro crosses.<\/p>\n<p>ECB board member Weidmann also gave the euro bulls a boost.\u00a0<a href=\"https:\/\/uk.reuters.com\/article\/uk-ecb-policy-weidmann\/plausible-that-ecb-can-end-bond-buys-this-year-weidmann-idUKKCN1J20RJ\" target=\"_blank\" rel=\"noopener\">He noted<\/a>\u00a0that inflation in the Eurozone is slowly returning to the ECB\u2019s target level and that market expectations that the QE program will end before 2018 is over are plausible.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Germany: factory orders (Apr) \u2013 This is an important indicator for the euro, although the reaction to it could be mixed. If the report exceeds expectations, buyers will push the session high to its limit. If factory orders drop and come out lower than expected, growth will slow down.<\/li>\n<li>09:45 France: trade balance (Apr) \u2013 This doesn\u2019t tend to have an effect on the euro\u2019s dynamics.<\/li>\n<li>10:00 Switzerland: foreign currency reserves (May) \u2013 This doesn\u2019t have an effect on currency markets.<\/li>\n<li>10:30 UK: Halifax house prices (May) \u2013 The pound is sensitive to this report, although it could still ignore it. We need to look at the general sentiment towards the pound.<\/li>\n<li>12:00 Eurozone: GDP (Q1) \u2013 This is uninteresting to speculators given that the second quarter is nearly at an end.<\/li>\n<li>15:30 USA: initial jobless claims (1 Jun) \u2013 Not relevant after the payrolls report.<\/li>\n<li>17:30 Canada: financial system review \u2013 Important for the Canadian dollar.<\/li>\n<li>18:15 Canada: BoC governor Poloz speech \u2013 Has a strong influence on the Canadian dollar.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/07.06.18_EURUSD_H1_5b18e5914a453.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>On Wednesday, the comments of two ECB board members helped the bulls recover to 1.18. In Asia, the pair is trading in the reversal zone between the 112<sup>th<\/sup>\u00a0and 135<sup>th<\/sup>\u00a0degrees. The dollar\u2019s decline across the board along with growth on the euro crosses is pushing the EURUSD pair upwards. The pair is currently trading at 1.1803.<\/p><div id=\"inves-2569664386\" 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>A bearish divergence has appeared between the price and AO indicator. This is a sell signal, but we\u2019ve seen that this doesn\u2019t work in practice when session trends are brought about by geopolitics and speeches from central bank officials.<\/p>\n<p>On the hourly timeframe, everything is pointing towards a downwards correction. I reckon that the rate is going to drop below 1.1790 again, after which the drop will intensify. The trend line runs through this level. We\u2019re currently in a sell zone (112 \u2013 135), so I think the rate will drop to around 1.1710\/20. Sellers have 2 resistance levels to overcome on the way; 1.1775 and 1.1752 (LB balance line and 45<sup>th<\/sup>\u00a0degree).<\/p>\n<p>There are some important events scheduled for today, which could impact the EURUSD pair via the euro crosses.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: euro in demand over expectations of QE reversal<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Wednesday the 6th\u00a0of June, trading on the euro closed up. Traders were active at the beginning of the European session. There was a surge in volatility during ECB chief economist Peter Praet\u2019s speech.\u00a0He confirmed\u00a0that the ECB\u2019s executive board will discuss when to end the bank\u2019s bond-buying program. The exchange [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-128009","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128009","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=128009"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128009\/revisions"}],"predecessor-version":[{"id":128010,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128009\/revisions\/128010"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=128009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=128009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=128009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}