5 Dec 2013
EUR/USD bounces sharply to fresh 5-week high
FXstreet.com (Córdoba) - Following a short-lived dip to in the wake of stronger-than-expected US data, the EUR/USD managed to bounce strongly and returned to positive ground or the day as ECB President Draghi conference takes place.
EUR/USD rallies 100 pips in the blink of an eye
However, EUR/USD bears lacked conviction and even though the EUR/USD fell to a fresh low of 1.3542, it quickly shrugged-off data and rallied toward fresh 1-month high of 1.3641, rising nearly 100 pips in a matter of minutes. "Draghi was dovish in his opening remarks but offered no new policies, as yet. The ECB staff raised its growth outlook for next year to 1.1% from 1.0%, so there appear to be no signs of panic within the halls of the ECB", says Jamie Coleman, analyst at FXBeat.
EUR/USD levels to watch
The EUR/USD is currently trading at the 1.3630 zone, recording a 0.3% gain on the day, with immediate resistances lining up at 1.3641 (daily high) and 1.3700 (psychological level) followed by 1.3539 (Oct 31 high). Meanwhile, supports are seen at 1.3542 (daily low) and 1.3524 (Dec 3 low) ahead of 1.3500 (psychological level).
EUR/USD rallies 100 pips in the blink of an eye
However, EUR/USD bears lacked conviction and even though the EUR/USD fell to a fresh low of 1.3542, it quickly shrugged-off data and rallied toward fresh 1-month high of 1.3641, rising nearly 100 pips in a matter of minutes. "Draghi was dovish in his opening remarks but offered no new policies, as yet. The ECB staff raised its growth outlook for next year to 1.1% from 1.0%, so there appear to be no signs of panic within the halls of the ECB", says Jamie Coleman, analyst at FXBeat.
EUR/USD levels to watch
The EUR/USD is currently trading at the 1.3630 zone, recording a 0.3% gain on the day, with immediate resistances lining up at 1.3641 (daily high) and 1.3700 (psychological level) followed by 1.3539 (Oct 31 high). Meanwhile, supports are seen at 1.3542 (daily low) and 1.3524 (Dec 3 low) ahead of 1.3500 (psychological level).