10, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Dollar came under pressure staying in the price range in October, still it can grow in the coming days as the relative strength index breaks out of the bearish trend.

Indeed the technical outlook for the dollar looks quite constructively, it remains above the monthly minimum, but may continue to decline if the deal on the budget will not be accepted.

Impasse in Congress could lead to further pressure on the reserve currency as the financial brake increases the risk that the Federal Open Market Committee (FOMC) will maintain its highly accommodative stance for the remainder of the year, and the bearish trend that began in July can go out - for the impasse in the political perspective.

In the U.S., tensions over the budget problems, threatening to turn into a default, continues to grow , but still there is no sign of active negotiations between Republicans and the White House on ways out of the crisis. Some legislators initiatives designed to find a way to compromise, yet do not get much support. In this case, White House officials say President Obama is still not ready to negotiate on clotting health insurance reform in exchange for concessions from Republicans on the issue of funding the federal government.

Euro failed to show a steady growth amid an unexpected decline in German industrial orders , which fell in August, the second month in a row. Industrial orders in the euro zone 's largest economy fell by 0.3 % m / m, due to the sharp fall in foreign orders, while the expected growth of 1.1 %. German trade balance for August, without correction, as well as the current account of balance of payments - also fell short of forecasts.