6 Nov 2013
EUR/USD fades the spike to 1.3550
FXstreet.com (Edinburgh) -The recent bull run of the EUR/USD seems to have run out of legs in the vicinity of 1.3550, sparking a correction lower to the current 1.3520/15.
EUR/USD focus on the ECB
The pair continues to consolidate gains beyond the key 1.3500 handle on Wednesday, as market participants focus their attention to the crucial ECB meeting due tomorrow. In the meantime, rumours about the likeliness of a rate cut or another monetary measure in the ECB’s toolbox keep building up amongst the FX community. “If the ECB chooses to leave interest rates on hold tomorrow, it’s quite likely that the rally in EUR/USD will be significantly less than the sell-off would have been in the instance of a 25bps cut. This is because a no change on rate at 1245 GMT might still be followed by a very dovish press conference, which either displays a significant change in language or lays the groundwork for future, possibly aggressive action”.
EUR/USD levels to watch
The pair is now up 0.37% at 1.3521 with the initial resistance at 1.3548 (high Nov.6) followed by 1.3589 (high Nov.1) and finally 1.3591 (38,2% 1.3833-1.3442). On the downside, a break below 1.3465 (50% of 1.3105-1.3826) would target 1.3442 (low Nov.4) en route to 1.3421 (38.2% of 1.2755-1.3833).
EUR/USD focus on the ECB
The pair continues to consolidate gains beyond the key 1.3500 handle on Wednesday, as market participants focus their attention to the crucial ECB meeting due tomorrow. In the meantime, rumours about the likeliness of a rate cut or another monetary measure in the ECB’s toolbox keep building up amongst the FX community. “If the ECB chooses to leave interest rates on hold tomorrow, it’s quite likely that the rally in EUR/USD will be significantly less than the sell-off would have been in the instance of a 25bps cut. This is because a no change on rate at 1245 GMT might still be followed by a very dovish press conference, which either displays a significant change in language or lays the groundwork for future, possibly aggressive action”.
EUR/USD levels to watch
The pair is now up 0.37% at 1.3521 with the initial resistance at 1.3548 (high Nov.6) followed by 1.3589 (high Nov.1) and finally 1.3591 (38,2% 1.3833-1.3442). On the downside, a break below 1.3465 (50% of 1.3105-1.3826) would target 1.3442 (low Nov.4) en route to 1.3421 (38.2% of 1.2755-1.3833).