The dollar is ready to turn around
25.03.2015
In the last few days, the EUR/USD pair corrected from a minimum of 12 years, and more than significantly. The hourly chart shows the grounds for reversal, and the dollar has sufficiently rested.
The Eurodollar has successfully implemented a correction, having escaped the twelve-year lows. This morning the currency pair is at the level of about 1.0950. However, the hourly chart suggests that the dollar is ready to return to the offensive.
Yesterday the USD realized all the found pros. According to the presented statistics, consumer prices in the US in February started to grow again. Inflation last month strengthened by 0.2% m/m. This is the maximum increase in 8 months and the first fact of strengthening of the indicator since October 2014.
A strong point is that the basic price (purified inflation, that is the index excluding volatile groups of goods) also increased by 0.2%. The figure is in line with expectations.
The data from the real estate sector was also pleasing. Sales of new buildings in February in the US rose to seven-year highs, gaining 7.6% m/m and amounted to 539 thousand. The forecast assumed that the figure would be reduced to 472 thousand. January statistics on the index of sales of new buildings has also been revised to a significant increase.
Against this backdrop, the dollar had to have strengthened.
RoboForex Analytical Department
The Eurodollar has successfully implemented a correction, having escaped the twelve-year lows. This morning the currency pair is at the level of about 1.0950. However, the hourly chart suggests that the dollar is ready to return to the offensive.
Yesterday the USD realized all the found pros. According to the presented statistics, consumer prices in the US in February started to grow again. Inflation last month strengthened by 0.2% m/m. This is the maximum increase in 8 months and the first fact of strengthening of the indicator since October 2014.
A strong point is that the basic price (purified inflation, that is the index excluding volatile groups of goods) also increased by 0.2%. The figure is in line with expectations.
The data from the real estate sector was also pleasing. Sales of new buildings in February in the US rose to seven-year highs, gaining 7.6% m/m and amounted to 539 thousand. The forecast assumed that the figure would be reduced to 472 thousand. January statistics on the index of sales of new buildings has also been revised to a significant increase.
Against this backdrop, the dollar had to have strengthened.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.