5 Sep 2013
EUR/USD decline stalled around 1.3120
FXstreet.com (Edinburgh) -The softer tone in the bloc currency is now reflected in some sort of consolidation pattern that the EUR/USD is attempting around 1.3120/15 as the session is slowly drawing to a close.
EUR/USD in 7-week lows
The pair quickly erased the initial gains after hitting session highs around 1.3220, nose-diving to test fresh 7-week lows in sub-1.3120 levels on a dovish tone from ECB’s President M.Draghi. Despite revising up the region’s growth forecasts for 2013 and 2014, Draghi noted that the bloc still faces strong headwinds and also confirmed that the Council in fact discussed a rate cut. Analysts at BTMU commented, “The ECB has clearly not got carried away with better incoming economic data. That sets the tone for the week ahead on the negative side perhaps. NFP tomorrow is also key of course and the ADP reading of 176K is close enough to the recent trend and hence something similar tomorrow will keep Sept tapering expectations intact. That is what we expect and in those circumstances we would lean toward a bearish bias for the week ahead”.
EUR/USD levels to watch
As of writing the pair is losing 0.66% at 1.3120 with the initial support at 1.3104 (50% of 1.2755-1.3453) followed by 1.3089 (low Jul.19) and finally 1.3051 (low Jul.16). On the flip side, a break above 1.3146 (MA200d) would target 1.3223 (high Sep.5) en route to 1.3237 (high Sep.2).
EUR/USD in 7-week lows
The pair quickly erased the initial gains after hitting session highs around 1.3220, nose-diving to test fresh 7-week lows in sub-1.3120 levels on a dovish tone from ECB’s President M.Draghi. Despite revising up the region’s growth forecasts for 2013 and 2014, Draghi noted that the bloc still faces strong headwinds and also confirmed that the Council in fact discussed a rate cut. Analysts at BTMU commented, “The ECB has clearly not got carried away with better incoming economic data. That sets the tone for the week ahead on the negative side perhaps. NFP tomorrow is also key of course and the ADP reading of 176K is close enough to the recent trend and hence something similar tomorrow will keep Sept tapering expectations intact. That is what we expect and in those circumstances we would lean toward a bearish bias for the week ahead”.
EUR/USD levels to watch
As of writing the pair is losing 0.66% at 1.3120 with the initial support at 1.3104 (50% of 1.2755-1.3453) followed by 1.3089 (low Jul.19) and finally 1.3051 (low Jul.16). On the flip side, a break above 1.3146 (MA200d) would target 1.3223 (high Sep.5) en route to 1.3237 (high Sep.2).