EUR/USD Reversal – Back to 1.1700?

Chart Of The Day

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EUR/USD staged a sharp intraday reversal today, ending the day at its lows after hitting a 3 week high of 1.1860. This morning’s Eurozone economic reports were better than expected with the region’s trade surplus growing. The dollar is strong despite mixed US data. If the House passes their version of the tax bill tomorrow, we could see a further lift in the greenback. Technically, EUR/USD is very weak and while today’s reversal still leaves the pair above the 50-day SMA, the next stop should be the 100-day SMA near 1.1740.

EURUSD – Heading for 1.1700?

EURUSD – Heading for 1.1700?

Chart Of The Day Uncategorized

Mario Draghi tried. He really did. But the market would just not buy his dovish talk. The fact of the matter is that the Eurozone recovery is in full bloom and the ECB is definitely heading for a taper as it tries to normalize monetary policy after years of extraordinary measures.

Meanwhile, on this side of the Atlantic, attempts by the Fed to reassure the market that further rate hikes are coming look increasingly dubious as US data continues to disappoint. The odds of another rate hike by the end of the year have fallen below 50% and today’s weak Philly Fed numbers did not help matters.

Tomorrow the econ calendar is barren, but euro bulls having broken through the key 1.1600 level are emboldened to challenged the multi month highs at 1.1719