4 Nov 2014
EUR/USD retraces to 1.2550
FXStreet (Edinburgh) - The shared currency is now back to the mid-1.2500s, as the EUR/USD is giving away some of the earlier gains post-session tops near 1.2580.
EUR/USD run out of legs at 1.2580
The abrupt bull run to session highs lacked steam, prompting sellers to impose their will around 1.2580. The move demonstrated once again the absence of conviction that dominates every upside intent in the EUR, this time fuelled by rumours questioning Draghi’s leadership and commitment to implement the necessary measures to tackle the disinflationary pressures that keep storming the euro region. Camilla Sutton, Chief FX Strategist at Scotiabank, argued “technical studies have turned bearish EUR and warn of further downside; however the signals arenot particularly strong. Support lies at the recent low of 1.2440 followed by 1.2400; resistance lies at Friday’s high of 1.2618”.
EUR/USD levels to watch
At the moment the pair is up 0.45% at 1.2548 with the next resistance at 1.2605 (Tenkan Sen) ahead of 1.2614 (low Oct.23) and then 1.2617 (high Oct.31). On the flip side, a breakdown of 1.2439 (low Nov.3) would expose 1.2431 (low Aug.22) and finally 1.2342 (low Aug.21).
EUR/USD run out of legs at 1.2580
The abrupt bull run to session highs lacked steam, prompting sellers to impose their will around 1.2580. The move demonstrated once again the absence of conviction that dominates every upside intent in the EUR, this time fuelled by rumours questioning Draghi’s leadership and commitment to implement the necessary measures to tackle the disinflationary pressures that keep storming the euro region. Camilla Sutton, Chief FX Strategist at Scotiabank, argued “technical studies have turned bearish EUR and warn of further downside; however the signals arenot particularly strong. Support lies at the recent low of 1.2440 followed by 1.2400; resistance lies at Friday’s high of 1.2618”.
EUR/USD levels to watch
At the moment the pair is up 0.45% at 1.2548 with the next resistance at 1.2605 (Tenkan Sen) ahead of 1.2614 (low Oct.23) and then 1.2617 (high Oct.31). On the flip side, a breakdown of 1.2439 (low Nov.3) would expose 1.2431 (low Aug.22) and finally 1.2342 (low Aug.21).