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Published on 9/03/2018 11:05:46 AM | Source: GEPLCapital Ltd

A sharp fall was noticed in EUR/USD after ECB meet - GEPL

Posted in Currency Report| #GEPLCapital Ltd #Currency Tips

Market Commentary

The ECB made for a volatile market where the Central Bank tweaked policy guidance and offered a marginally twist to the meeting where the euro initially found a bid but met string supply when those disappointed with the lack of clarity and who had been expecting more from this meeting got involved. The entire market's platform was shaken up sending many currencies down with the euro, including bond yields. DXY was trading between a range of 89.442 - 90.232, ending 0.60% to 90.1790.

As for other currencies, EUR/USD rallied from 1.2380 to 1.2445 before losing ground all the way back to1.2300 in the NY afternoon, -0.9% for the day.

GBP/USD was also holding a return ticket from 1.3900 to a close of 1.3807, -0.71% on the NY session.

USD/JPY was less volatile during the sessions ahead of the meeting

USD/INR opens at 65.08 above the previous close of 65.03. Prices were able to sustain above 65 making a low of 65.01. In the second half bulls were in full swing making a high of 65.27 and closed at 65.25. For today we expect the pair to trade between 65-65.50. If prices sustain above 65.10 we might see prices testing 65.50.

USDINR Technical Outlook

Observations:

* Prices break above the lower low lower high pattern

* ADX=26, RSI making higher high higher low and MACD above the zero line indicating bullish momentum is building

Inferences:

* Trend to remain bullish till 64 is not broken on the downside

* If prices sustain above 65.10 we might see prices testing 65.50.

EURINR Technical Outlook

Observations:

* Prices break and closed above the resistance placed at 80.60

* Negative divergence between price and indicators indicating caution

Inferences:

* Trend to remain bullish till 79.70 is not broken on the downside

* If prices sustain below 80.60 we might see prices testing 81.50 levels

GBPINR Technical Outlook

Observations:

* Prices are trading in the range 89.86-91.23

* ADX, RSI and MACD rounding of at same time indicating 91.86 to be an short term top

Inferences:

* Trend to remain bullish till 89 is not broken on downside

* If prices sustain above 89.80 we might we prices testing 91.25 levels

JPYINR Technical Outlook

Observations:

* Prices failed to close below the gap and close above the support placed at 61

* ADX=54 +DMI>-DMI indicating strong bull trend and RSI,MACD higher high higher low indicating strong bullish momentum

Inferences:

* Trend to remain bullish till 60 is not broken on the downside

*  If prices sustain above 61.22 we might see prices testing 62 levels.


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