11 Jun 2013
EUR/USD around 1.3260/65, eyes on Germany
FXstreet.com (Barcelona) - The EUR/USD is now giving some ground after hitting fresh session highs in the vicinity of 1.3290/95 overnight.
The euro would be under pressure on Tuesday, as the German Constitutional Court will start a two-day hearing regarding the ECB’s OMT programme, although the final decision would come by fall. “As Germany’s constitutional court looks to explore the legality of the non-standard measure, ECB officials are very adamant that the OMT is possible under its current mandate, but the central bank may face increased criticism over the near to medium-term as the governments operating under the fixed-exchange rate system become increasingly reliant on monetary support. In turn, the OMT hearing may have a limited impact on the EURUSD, but the single currency remains poised to face additional headwinds in the second-half of the year as the region struggles to emerge from the recession", assessed David Song, Currency Analyst at DailyFX.
At the moment, the pair is up 0.03% at 1.3263 with the next resistance at 1.3306 (high Jun.6) followed by 1.3319 (high Feb.25) and finally 1.3341 (61.8% of Feb.-Apr. slide). On a downside, a breach of 1.3103 (MA100d) would expose 1.3075 (low Jun.6) and then 1.3053 (low Jun.5).
The euro would be under pressure on Tuesday, as the German Constitutional Court will start a two-day hearing regarding the ECB’s OMT programme, although the final decision would come by fall. “As Germany’s constitutional court looks to explore the legality of the non-standard measure, ECB officials are very adamant that the OMT is possible under its current mandate, but the central bank may face increased criticism over the near to medium-term as the governments operating under the fixed-exchange rate system become increasingly reliant on monetary support. In turn, the OMT hearing may have a limited impact on the EURUSD, but the single currency remains poised to face additional headwinds in the second-half of the year as the region struggles to emerge from the recession", assessed David Song, Currency Analyst at DailyFX.
At the moment, the pair is up 0.03% at 1.3263 with the next resistance at 1.3306 (high Jun.6) followed by 1.3319 (high Feb.25) and finally 1.3341 (61.8% of Feb.-Apr. slide). On a downside, a breach of 1.3103 (MA100d) would expose 1.3075 (low Jun.6) and then 1.3053 (low Jun.5).