Output in the US stronger than expected data on GDP growth for the third quarter of this year provoked at yesterday's auction another round of increased demand for the dollar. And, despite a slight decline in GDP growth in the last quarter (3.5% vs. 4.6% - in the 2nd quarter) growth figure for the last 6 months was the most impressive, more than ten years (since the second half of 2003).
Euro / dollar has performed a correction to yesterday's growth momentum. At present, considering the possibility of growth in the euro dollar breakdown pulse peak and continue to perfect the level of 1.2724. Next expect decline in the euro back to the level of 1.2635.
Comments Fed and US economic data indicated that the central bank may raise interest rates sooner than expected. On Wednesday, the Fed said that at the end of October, as expected, will complete its program of bond purchases.Along with this, it has raised its assessment of the situation on the labor market, but pointed to some short-term downside risks to inflation. The central bank left unchanged the wording of that short-term interest rates will remain near zero "a significant period of time."
EUR / USD: technical analysis and forecast of the euro dollar 31/10/2014
Fig. 1. The daily chart
The euro dollar continued to decline in the descending channel, but on the approach to a minimum of 1.2500 EUR / USD found support and rebounded slightly. While the euro / dollar rate remains in the channel, it is likely to overcome the low 1.2500 and exit to the support line of the channel. Further reduction of the euro can be difficult.