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4 Jul 2013
EUR/USD creeping back above 1.2900
FXstreet.com (Barcelona) - After dipping near 1.2880 post-ECB press conference, the shared currency gradually started a recovery, lifting the EUR/USD beyond 1.2900.
EUR/USD lower on forward guidance
Although a dovish tone by President Draghi was broadly expected, he managed to yet surprise investors by adopting a Fed-style forward guidance in the central bank’s policy, triggering a sharp sell off in the euro that quickly dragged the pair to fresh 5-week lows around 1.2880. In the opinion of Richard Kelly, Strategist at TD Securities, “While this provides the ECB a tool to more directly control the policy expectations curves that should keep the hawks at bay for now, this may be tested within 3-6 months if the data continues to improve”.
EUR/USD support and resistance levels
The pair is now retreating 0.64% at 1.2926 with the next support at 1.2883 (low. Jul.40 followed by 1.2859 (weekly cloud top) ahead of 1.2838 (low May 29). On the flip side, a break above 1.3032 (high Jul.3) would target 1.3055 (MA100d) en route to 1.3078 (high Jul.2).
EUR/USD lower on forward guidance
Although a dovish tone by President Draghi was broadly expected, he managed to yet surprise investors by adopting a Fed-style forward guidance in the central bank’s policy, triggering a sharp sell off in the euro that quickly dragged the pair to fresh 5-week lows around 1.2880. In the opinion of Richard Kelly, Strategist at TD Securities, “While this provides the ECB a tool to more directly control the policy expectations curves that should keep the hawks at bay for now, this may be tested within 3-6 months if the data continues to improve”.
EUR/USD support and resistance levels
The pair is now retreating 0.64% at 1.2926 with the next support at 1.2883 (low. Jul.40 followed by 1.2859 (weekly cloud top) ahead of 1.2838 (low May 29). On the flip side, a break above 1.3032 (high Jul.3) would target 1.3055 (MA100d) en route to 1.3078 (high Jul.2).