1 Aug 2013
EUR/USD muted after ECB
FXstreet.com (Edinburgh) -The single currency kept the composure after the ECB left its monetary policy unchanged on Thursday, with the EUR/USD around the 1.3240/50 region.
EUR/USD focus on Draghi
ECB’s Draghi will hold its usual press conference later, with the recently adopted ‘forward guidance’ expected to be in the limelight. A cautious to pessimist mood persist amongst traders today, as the recent inability to sustain highs above 1.3300 the figure would be indicative that a leg lower would be in the pipeline. “Given the risk of dovish comments from Draghi and expectations for another solid, even if not spectacular US jobs report tomorrow, we favour a further push lower in the euro. Initial support is seen in the $1.3200-10 area, where a break would encourage a test of last week's lows near $1.3135”, commented BBH Global Currency Strategy Team.
EUR/USD levels to consider
As of writing the pair is retreating 0.50% at 1.3235 and a breach of 1.3207 (low Jul.31) would expose 1.3166 (low Jul.25) ahead of 1.3164 (low Jul.23). On the upside, resistance levels line up at 1.3311 (high Aug.1) followed by 1.3345 (high Jul.31) and finally 1.3417 (high Jun.19).
EUR/USD focus on Draghi
ECB’s Draghi will hold its usual press conference later, with the recently adopted ‘forward guidance’ expected to be in the limelight. A cautious to pessimist mood persist amongst traders today, as the recent inability to sustain highs above 1.3300 the figure would be indicative that a leg lower would be in the pipeline. “Given the risk of dovish comments from Draghi and expectations for another solid, even if not spectacular US jobs report tomorrow, we favour a further push lower in the euro. Initial support is seen in the $1.3200-10 area, where a break would encourage a test of last week's lows near $1.3135”, commented BBH Global Currency Strategy Team.
EUR/USD levels to consider
As of writing the pair is retreating 0.50% at 1.3235 and a breach of 1.3207 (low Jul.31) would expose 1.3166 (low Jul.25) ahead of 1.3164 (low Jul.23). On the upside, resistance levels line up at 1.3311 (high Aug.1) followed by 1.3345 (high Jul.31) and finally 1.3417 (high Jun.19).