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1 Apr 2013
Forex: EUR/USD in session highs around 1.2840/45
FXstreet.com (Barcelona) - The single currency is trading in the upper end of today’s range so far, eyeing 1.2850 as the effects of the softer ISM are still hovering over the markets. Recall that the Markit Manufacturing PMI came in at 54.6 in March and the ISM Manufacturing at 51.3 vs. previous prints at 54.3 and 54.2, respectively.
Analyst Elwin de Groot at Rabobank expects the ECB to leave the refi rate unchanged at 0.75% on Thursday, adding, “Looking at the turmoil the recent Cypriot crisis ‘resolution’ has caused, a rate cut at this point would smack of uncertainty if not outright panic among the Governing Council”.
At the moment, the cross is up 0.32% at 1.2846 with the next resistance at 1.2888 (MA200d) followed by 1.2890 (highMar.26) and finally 1.2901 (MA10d).
On the flip side, a breakdown of 1.2751 (low Mar.27) would open the door to 1.2730 (low Nov.19) and finally 1.2680 (61.8% of 1.2042-1.3711).
Analyst Elwin de Groot at Rabobank expects the ECB to leave the refi rate unchanged at 0.75% on Thursday, adding, “Looking at the turmoil the recent Cypriot crisis ‘resolution’ has caused, a rate cut at this point would smack of uncertainty if not outright panic among the Governing Council”.
At the moment, the cross is up 0.32% at 1.2846 with the next resistance at 1.2888 (MA200d) followed by 1.2890 (highMar.26) and finally 1.2901 (MA10d).
On the flip side, a breakdown of 1.2751 (low Mar.27) would open the door to 1.2730 (low Nov.19) and finally 1.2680 (61.8% of 1.2042-1.3711).