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2 Oct 2013
EUR/USD easing to 1.3520 pre-ECB
FXstreet.com (Edinburgh) -The shared currency is back to the area of 1.3520/25, with the EUR/USD retreating from earlier intraday tops in the boundaries of 1.3535/40 ahead of the ECB meeting.
EUR/USD eyes on Draghi’s press conference
Market consensus expects the central bank to leave the refi rate unchanged at 0.5%, although the subsequent press conference by President Mario Draghi would bring the pertinent fireworks. The euro would thus remain under pressure, as Draghi would emphasize the bank’s forward guidance in order to ‘talk down’ the recent higher levels of the shared currency. Tim Riddell, Head of Global Markets Research at ANZ, commented “The “failed” spike to 1.3550 (an intriguing hammer candle) may be part of a running correction and so potential of a continued drive towards this year’s 1.3710 high and an area of measured targets at 1.3800 should not be denied, but it also raises the potential that the up-leg off 1.3100 may have completed already”.
EUR/USD relevant levels
The pair is now retreating 0.04% at 1.3519 and a breach of 1.3517 (low Otc.1) would target 1.3500 (psychological level) en route to 1.3467 (low Sep.30). On the upside, the next resistance aligns at 1.3598 (high Feb5) followed by 1.3660 (high Feb.4) and finally 1.3711 (2013 high Feb.1).
EUR/USD eyes on Draghi’s press conference
Market consensus expects the central bank to leave the refi rate unchanged at 0.5%, although the subsequent press conference by President Mario Draghi would bring the pertinent fireworks. The euro would thus remain under pressure, as Draghi would emphasize the bank’s forward guidance in order to ‘talk down’ the recent higher levels of the shared currency. Tim Riddell, Head of Global Markets Research at ANZ, commented “The “failed” spike to 1.3550 (an intriguing hammer candle) may be part of a running correction and so potential of a continued drive towards this year’s 1.3710 high and an area of measured targets at 1.3800 should not be denied, but it also raises the potential that the up-leg off 1.3100 may have completed already”.
EUR/USD relevant levels
The pair is now retreating 0.04% at 1.3519 and a breach of 1.3517 (low Otc.1) would target 1.3500 (psychological level) en route to 1.3467 (low Sep.30). On the upside, the next resistance aligns at 1.3598 (high Feb5) followed by 1.3660 (high Feb.4) and finally 1.3711 (2013 high Feb.1).