2 Dec 2013
EUR/USD dips below 1.3530
FXstreet.com (Edinburgh) - The shared currency extends its sell off on Monday, dragging the EUR/USD to sub-1.3530 levels ahead of the key US ISM Manufacturing.
EUR/USD focus on the US calendar
The offered tone continues to prevail amongst EUR traders at the beginning of the week, ahead of the critical US ISM Manufacturing, with consensus expecting the gauge to ease to 55.0 in November from 56.4 in the previous month. Market participants would also pay close attention to Bernanke’s speech due in the European noon. According to analysts at BTMU and pointing to the next ECB meeting on Thursday, “We do not expect that the ECB will ease monetary policy further at next week’s policy meeting which will likely be required to weaken the euro materially. However, the unveiling of the latest ECB staff forecasts and President Draghi’s press conference should signal that further monetary easing remains likely next year given the outlook for low inflation and weak growth in the euro-zone”.
EUR/USD significant levels
The pair is now retreating 0.34% at 1.3537 and a breakdown of 1.3515 (low Nov.26) would expose 1.3499 (MA21d) and finally 1.3490 (low Nov.25). On the upside, the initial hurdle lines up at 1.3616 (high Dec.2) followed by 1.3622 (high Nov.29) and then 1.3628 (61.8% of 1.3833-1.3295).
EUR/USD focus on the US calendar
The offered tone continues to prevail amongst EUR traders at the beginning of the week, ahead of the critical US ISM Manufacturing, with consensus expecting the gauge to ease to 55.0 in November from 56.4 in the previous month. Market participants would also pay close attention to Bernanke’s speech due in the European noon. According to analysts at BTMU and pointing to the next ECB meeting on Thursday, “We do not expect that the ECB will ease monetary policy further at next week’s policy meeting which will likely be required to weaken the euro materially. However, the unveiling of the latest ECB staff forecasts and President Draghi’s press conference should signal that further monetary easing remains likely next year given the outlook for low inflation and weak growth in the euro-zone”.
EUR/USD significant levels
The pair is now retreating 0.34% at 1.3537 and a breakdown of 1.3515 (low Nov.26) would expose 1.3499 (MA21d) and finally 1.3490 (low Nov.25). On the upside, the initial hurdle lines up at 1.3616 (high Dec.2) followed by 1.3622 (high Nov.29) and then 1.3628 (61.8% of 1.3833-1.3295).