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26 Apr 2013
Forex: EUR/USD treading water around 1.3020/30
FXstreet.com (Barcelona) - The shared currency is closing the week in the negative ground, meandering within the 1.3000/40 range, although keeping the composure against a backdrop of increasing market chat pointing to an imminent rate cut by the ECB.
Camilla Sutton, Strategist at Scotiabank, commented that the cocktail involving the risk of a rate cut, uncertainty in Italy and over the OMT and ESM, growth concerns and poor data is definitely euro-negative, “However to date the EUR has held in relatively well, in part because on a relative basis, ECB policy remains less currency negative than the BoJ, Fed or BoE policy. However the risk of a near-term EUR break below the 200-day MA at 1.2949 are rising”, concluded Sutton.
At the moment, the pair is up 0.14% at 1.3029 facing the next resistance at 1.3094 (high Apr.25) ahead of 1.3130 (high Apr.19) and then 1.3202 (high Apr.16).
On the flip side, a breach of 1.2988 (low Apr.25) would the target 1.2954 (low Apr.24) en route to 1.2948 (MA200d).
Camilla Sutton, Strategist at Scotiabank, commented that the cocktail involving the risk of a rate cut, uncertainty in Italy and over the OMT and ESM, growth concerns and poor data is definitely euro-negative, “However to date the EUR has held in relatively well, in part because on a relative basis, ECB policy remains less currency negative than the BoJ, Fed or BoE policy. However the risk of a near-term EUR break below the 200-day MA at 1.2949 are rising”, concluded Sutton.
At the moment, the pair is up 0.14% at 1.3029 facing the next resistance at 1.3094 (high Apr.25) ahead of 1.3130 (high Apr.19) and then 1.3202 (high Apr.16).
On the flip side, a breach of 1.2988 (low Apr.25) would the target 1.2954 (low Apr.24) en route to 1.2948 (MA200d).