EUR/USD mired around 1.3550

FXstreet.com (Edinburgh) - The selling pressure around the euro remains intact on Monday, with the EUR/USD navigating in the mid-1.3500s, just above session lows near 1.3520.

EUR/USD weak ahead of ECB

The pair convincingly broke below the 1.3600 handle after the Asian session, bottoming out in the vicinity of 1.3520 despite the solid results from the PMI prints in the euro area, surprising investors to the upside. Ahead in the week, the ECB meeting grabs all the attention with opinions clearly divided regarding the next steps of the central bank. “We see strong arguments against new action, at least this week, given the internal controversies over the last rate cut and that evidence suggests the ECB does not like to surprise markets twice in a row”, noted Carsten Brzeski at ING.

EUR/USD significant levels

The pair is now retreating 0.26% at 1.3549 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).

Flash: AUD dominated by two events

Strategists at BBH said that while the Reserve Bank of Australia is not expected to change the cash rate which stands at a record low 2.50%, it may still keep the door open to further easing in 2014.
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