3 Dec 2014
EUR/USD drops to 1.2320
FXStreet (Edinburgh) - The shared currency is intensifying its downside on Wednesday, dragging EUR/USD to test fresh ytd lows in the 1.2320 area.
EUR/USD hit by PMIs
Softer-than-expected PMIs from the Services sector in Euroland hurt the pair, relegating it to trade back to levels last seen in August 2012. Today’s results add to the recent disappointment from the manufacturing PMIs released earlier in the week, sending spot lower and opening the door for a challenge of the 1.2300 critical support. In light of the ECB meeting sue tomorrow, analysts at Danske Bank assessed “we believe that the ECB will keep the powder dry in December as it waits for the take-up on the TLTRO in mid-December, but at the same time that Draghi will sound as dovish as he can without actually easing”.
EUR/USD levels to watch
At the moment the pair is losing 0.30% at 1.2343 and a break below 1.2295 (low Aug.20 2012) would aim for 1.2288 (low Aug.17 2012) and then 1.2256 (low Aug.16 2012). On the flip side, the immediate hurdle lines up at 1.2419 (low Dec.1) ahead of 1.2449 (10-d MA) and finally 1.2476 (high Dec.2).
EUR/USD hit by PMIs
Softer-than-expected PMIs from the Services sector in Euroland hurt the pair, relegating it to trade back to levels last seen in August 2012. Today’s results add to the recent disappointment from the manufacturing PMIs released earlier in the week, sending spot lower and opening the door for a challenge of the 1.2300 critical support. In light of the ECB meeting sue tomorrow, analysts at Danske Bank assessed “we believe that the ECB will keep the powder dry in December as it waits for the take-up on the TLTRO in mid-December, but at the same time that Draghi will sound as dovish as he can without actually easing”.
EUR/USD levels to watch
At the moment the pair is losing 0.30% at 1.2343 and a break below 1.2295 (low Aug.20 2012) would aim for 1.2288 (low Aug.17 2012) and then 1.2256 (low Aug.16 2012). On the flip side, the immediate hurdle lines up at 1.2419 (low Dec.1) ahead of 1.2449 (10-d MA) and finally 1.2476 (high Dec.2).