Monday, January 19, 2015

EUA Dec15: Political decisions might pull the price out of its comfort zone

As we wrote in the previous issue there were several signs for the market looking for a bottom in the first week of January. Hesitation characterized last Monday’s trading as well. The price fell to 6.67 euro, a level not seen mid-December. 

The ITRE rapporteur’s new proposal on Tuesday of an MSR start in 2019 however gave wings to the price that broke the 7 euro level, the 20 and 30DMAs and several Fibonacci retracement levels. On the last three days of the week the price moved in a range between the 20DMA and 7.48 euro.

The MACD is above the zero line again and crossed the signal curve, which can be considered as a bullish sign. Until the ITRE vote however we expect the price to move sideways between 7.00 and 7.50 euro.

Source: Bloomberg Finance L.P.

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