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Old 10-10-2018, 10:51
ObasiFXMart ObasiFXMart is offline
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Join Date: Jul 2018
Posts: 98
Default Re: Daily Market Analysis by ForexMart

EUR/USD Fundamental Analysis: October 10, 2018

The euro against the US dollar exhibited a sharp drop during the Tuesday session because of Italian policy news, as well as, deputy PM Salvin rhetorics in plans of maintaining the budget and EU rules are anticipated to change. A strong dollar added more concern, resulting to surge in US Treasury yields. However, the euro begins to take the lead later on as the dollar weakened in the market due to the drop in US bond yield after reaching record highs. Moreover, risk sentiment has just returned in the market giving a positive impact following a hawkish tone in the Wall Street in the global market.

In a technical aspect, a long-tailed Doji candle was observed, implying a sell-off from the September high of 1.1815. A bullish reversal would be confirmed if the spot closes this day higher than the Doji candle of 1.1503. Based on the chart, the descending line has been cleared and trades above the 50- and 100-EMA with the RSI at 55, siding with the bulls. The 4-hour chart shows a bullish RSI divergence. It seems that this will result positively on long-legged Doji candle yesterday, confirming a bullish reversal. Yet, there would be lesser tendency to turn bullish from bearish if the Italian bond yields surge in the European session.
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