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Euro Tumbles to Support as Momentum Turns Negative
EUR/USD is accelerating to the downside after sinking from a 1.1035 peak last Monday to a 1.0567 low on Friday, which was a big move. Today’s low of 10527, is poised to test the 1.0480 March lows. Resistance is marked at 1.0683 and 1.0700, and the 10-day moving average is at 1.0776. Momentum has turned negative with the MACD (moving average convergence divergence index) generated a sell signal. Greek considerations are still making their way through the market, and could generate unwanted volatility.
Tsipras considers new election, according to German tabloid Bild. Greek Prime Minister Tsipras is considering yet another round of elections depending on the outcome of the negotiations with the creditors. If there is no agreement on fresh aid, Tsipras is reportedly planning to hold new elections, with the hope that this will give him an even larger majority and more backing for his anti-austerity policies. In that situation such an elections would effectively be a vote on Greece’s EMU membership. Greece has reportedly been given a deadline until Wednesday to come with with a final list of reform measures that can be approved at the Eurogroup meeting on April 24. With Greece running out of cash, the risk of Greek exit is rising as negotiations drag on.
The dollar gained traction as China reported a narrowing in its trade surplus to $3.1 billion in March after holding steady just above $60 billion in January and February. Compared to year ago levels, imports slipped 12.7% year over year and exports fell 15.0% year over year. It is a 5th straight monthly decline in imports. The CNY firmed in March, and there’s growing anxiety over the slippage in trade and the growing fears of a slowdown in China’s economy. In CNY terms the trade surplus fell to 18.2 billion versus February’s 307.5 billion, with imports down 12.3% year over year and exports off 14.6% year over year.
The post Euro Tumbles to Support as Momentum Turns Negative appeared first on Forex Circles.
