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EUR/USD NEEDS A PUSH TO CONVINCE SHORT-SELLERS TO FOLD -- MARKET TALK
22 September 2016, 02:19
0219 GMT [Dow Jones] EUR/USD is fading back toward its Wednesday closing level of 1.1185, as the dollar-selling wave triggered by dovishness from the U.S. Federal Reserve appears to be ebbing. The euro needs another push toward the 1.1236 mark, where the Bollinger uptrend channel begins, in order to sustain upward momentum. Confirmation of that bullish chart trigger could convince euro short-sellers to fold their positions, which could boost EUR/USD toward the 1.1370 ceiling of the weekly uptrend channel. The dollar ought to remain under pressure now that the Fed has charted a slower path for future rate-rises. That long-term dovishness has boosted emerging market currencies, and stock markets around the world are rallying. EUR/USD is now 1.1189 from its Wednesday closing of 1.1185. (ewen.chew@wsj.com)
Editor: MNG
(END) Dow Jones Newswires
September 21, 2016 22:19 ET (02:19 GMT)
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