6 Jun 2013
EUR/USD cleared May highs above 1.3240
FXstreet.com (Barcelona) - The EUR/USD climbed to the boundaries of 1.3280 on Thursday, quickly leaving behind he critical area of 1.3220/40, May highs.
The pair initiated a steep rebound after the ECB left the lending rate unchanged at 0.5% in today’s meeting. The absence of bad news and no mention of a rate cut were initially bolstering the upside. “This continues to support our belief that if the data deteriorates to trigger an ECB rate cut, it is likely to include a move to a negative deposit rate. But we still see no need to change our forecast for no changes in ECB policy this year as the data does look likely to trend towards improvement into the second half of the year”, commented Richard Kelly, Strategist at TD Securities.
As of writing, the pair is up 1.14% at 1.3243 and a breakout of 1.3319 (high Feb.25) would open the door to 1.3343 (61.8% of Feb-Apr slide). On the flip side, support levels line up at 1.3108 (MA100d) ahead of 1.3075 (low Jun6) and then 1.3053 (low Jun.5).
The pair initiated a steep rebound after the ECB left the lending rate unchanged at 0.5% in today’s meeting. The absence of bad news and no mention of a rate cut were initially bolstering the upside. “This continues to support our belief that if the data deteriorates to trigger an ECB rate cut, it is likely to include a move to a negative deposit rate. But we still see no need to change our forecast for no changes in ECB policy this year as the data does look likely to trend towards improvement into the second half of the year”, commented Richard Kelly, Strategist at TD Securities.
As of writing, the pair is up 1.14% at 1.3243 and a breakout of 1.3319 (high Feb.25) would open the door to 1.3343 (61.8% of Feb-Apr slide). On the flip side, support levels line up at 1.3108 (MA100d) ahead of 1.3075 (low Jun6) and then 1.3053 (low Jun.5).