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Old 29-10-2018, 10:51
ObasiFXMart ObasiFXMart is offline
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Default Re: Daily Market Analysis by ForexMart

EUR/USD Fundamental Analysis: October 29, 2018



The euro major pair had a lot of bids on Friday amid the wide losses in the greenback. Yet, the technical analysis continues to be bearish in 5, 10 and 21-day exponential moving average (EMA) and heads south. Similarly, the 14-day Relative strength index (RSI) and MACD continue to have a bearish sentiment. Meanwhile, the stock markets continue to be on a defense today, putting a lot of bid for the dollar given the Shanghai Composite dropped by 1 percent in Asia. German Chancellor Merkel lost support in the Hesse elections, doubling the greens vote. As for the center-left threatened to leave the coalition.

The pair trading close to the flat level of 1.1395, dropping by 0.06% on the day. This is not good for the common currency given the weakness of Merkel as it limits the capacity of Brexit deal negotiation and with Italian budget crisis at hand. A strong bearish pressure is present after last week ended with a dovish sentiment. Hence, traders remained careful on the weekend. The European calendar remains to be subdued except for the recent publication of EU economic forecast and Finnish Consumer & Industrial confidence data. Nonetheless, these data are not likely to have a big impact on the trading activity.

The market anticipates the release of Core PCE Price index, PCE Deflector data and consumer spending data from the US which will bring volatility during the North American session. At the same time, expectations of Fed tightening was limited by the risk aversion in the US stocks that are anticipated to continue and appeals bidding for the EUR/USD pair.
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