5 Dec 2013
EUR/USD erases gains ahead of ECB
FXstreet.com (Córdoba) - After hitting a fresh 1-month high Thursday, the EUR/USD came under pressure and completely erased intraday gains as investors gear up for the European Central Bank policy decision.
EUR/USD dips below 1.3600
The EUR/USD found resistance at 1.3638 and slid all the way back to opening levels amid comments about delays to Greek next tranche of loans. At time of writing, the EUR/USD is trading at the 1.3590 zone, where it is virtually unchanged on the day ahead of the ECB decision and a raft of US data, including the 2nd estimate of Q3 GDP. "The Central Bank is expected to remain on hold today after cutting rates last month. Consensus suggests Mr. Draghi will likely maintain its dovish tone, and doors open for further stimulus if required", said Valeria Bednarik, chief analyst at FXstreet.com.
EUR/USD technical levels
"Technically, the EUR/USD holds a positive tone despite the range", says Bednarik. As for technical levels, the EUR/USD could find next resistances at 1.3640 (daily high) and 1.3700 (psychological level) ahead of 1.3739 (Oct 31 high). On the flip side, supports are seen at 1.3579 (daily low and 100-hour SMA) and 1.3524 (Dec 3 low).
EUR/USD dips below 1.3600
The EUR/USD found resistance at 1.3638 and slid all the way back to opening levels amid comments about delays to Greek next tranche of loans. At time of writing, the EUR/USD is trading at the 1.3590 zone, where it is virtually unchanged on the day ahead of the ECB decision and a raft of US data, including the 2nd estimate of Q3 GDP. "The Central Bank is expected to remain on hold today after cutting rates last month. Consensus suggests Mr. Draghi will likely maintain its dovish tone, and doors open for further stimulus if required", said Valeria Bednarik, chief analyst at FXstreet.com.
EUR/USD technical levels
"Technically, the EUR/USD holds a positive tone despite the range", says Bednarik. As for technical levels, the EUR/USD could find next resistances at 1.3640 (daily high) and 1.3700 (psychological level) ahead of 1.3739 (Oct 31 high). On the flip side, supports are seen at 1.3579 (daily low and 100-hour SMA) and 1.3524 (Dec 3 low).