3 Dec 2013
EUR/USD climbs beyond 1.3570
FXstreet.es (Edinburgh) - Renewed buying interest is now pushing the EUR/USD to post intraday highs in the area of 1.3570/75 on Tuesday, as the risk aversion seems to be taking a breather.
EUR/USD all eyes on the ECB
The pair continues to show signs of strong resilience above 1.3500 the figure, ahead of key Services PMI releases due tomorrow and the ECB gathering on Thursday. Previous data saw the Spanish unemployment drop by 2.5K during November, largely bettering expectations for an increase by 44.3K. Carsten Brzeski, Senior Economist at ING, assessed, “The latest reports have indicated that the ECB is willing to boldly go beyond the zero bound of interest rates. In our view, the ECB’s next steps will have to substitute, not supplement, traditional interest rate policy and should, at the same time, have limited side-effects. In this regard, a conditional LTRO could be the least controversial next option”.
EUR/USD levels to consider
The pair is now advancing 0.24% at 1.3572 with the initial resistance at 1.3616 (high Dec.2) followed by 1.3622 (high Nov.29) and then 1.3628 (61.8% of 1.3833-1.3295). On the flip side, a breakdown of 1.3525 (low Dec.2) would target 1.3515 (low Nov.26) en route to 1.3502 (MA21d).
EUR/USD all eyes on the ECB
The pair continues to show signs of strong resilience above 1.3500 the figure, ahead of key Services PMI releases due tomorrow and the ECB gathering on Thursday. Previous data saw the Spanish unemployment drop by 2.5K during November, largely bettering expectations for an increase by 44.3K. Carsten Brzeski, Senior Economist at ING, assessed, “The latest reports have indicated that the ECB is willing to boldly go beyond the zero bound of interest rates. In our view, the ECB’s next steps will have to substitute, not supplement, traditional interest rate policy and should, at the same time, have limited side-effects. In this regard, a conditional LTRO could be the least controversial next option”.
EUR/USD levels to consider
The pair is now advancing 0.24% at 1.3572 with the initial resistance at 1.3616 (high Dec.2) followed by 1.3622 (high Nov.29) and then 1.3628 (61.8% of 1.3833-1.3295). On the flip side, a breakdown of 1.3525 (low Dec.2) would target 1.3515 (low Nov.26) en route to 1.3502 (MA21d).