5 Sep 2013
EUR/USD picking up pace, eyes 1.32
FXstreet.com (Edinburgh) -The single currency is now gathering steam against the greenback, lifting the EUR/USD to the vicinity of the key resistance at 1.3200 the figure on Thursday.
EUR/USD bounces off 1.3160
After bottoming out near 1.3160, the pair managed to escalate further ground and test the upper end of the range near the key 1.3200 handle, amidst lower yields from the Spanish auction and record high yields from French 10-year bonds in the Holland era. In light of the ECB meeting, Strategist Jane Foley at Rabobank commented, “It is widely assumed that ECB President Draghi will reiterate his dovish forward guidance at today’s regular Council meeting. Insofar as the Eurozone still has a long way to go before shrugging off the mantle of slow growth and crisis, the ECB is likely to attempt to push back against the recent move higher in market rates… If a dovish tone from the ECB is insufficient in knocking EUR/USD below the convergence of the 100 and 200 day smas at 1.3139/47 if might be that upcoming US data does the trick”.
EUR/USD levels to watch
As of writing the pair is losing 0.10% at 1.3193 with the initial support at 1.3157 (low Sep.4) followed by 1.3147 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3218 (high Sep.4) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).
EUR/USD bounces off 1.3160
After bottoming out near 1.3160, the pair managed to escalate further ground and test the upper end of the range near the key 1.3200 handle, amidst lower yields from the Spanish auction and record high yields from French 10-year bonds in the Holland era. In light of the ECB meeting, Strategist Jane Foley at Rabobank commented, “It is widely assumed that ECB President Draghi will reiterate his dovish forward guidance at today’s regular Council meeting. Insofar as the Eurozone still has a long way to go before shrugging off the mantle of slow growth and crisis, the ECB is likely to attempt to push back against the recent move higher in market rates… If a dovish tone from the ECB is insufficient in knocking EUR/USD below the convergence of the 100 and 200 day smas at 1.3139/47 if might be that upcoming US data does the trick”.
EUR/USD levels to watch
As of writing the pair is losing 0.10% at 1.3193 with the initial support at 1.3157 (low Sep.4) followed by 1.3147 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3218 (high Sep.4) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).