4 Dec 2014
EUR/USD: ECB, levels and what if’s technically?
FXStreet (Guatemala) - EUR/USD is trading at 1.2313, up 0.03% on the day, having posted a daily high at 1.2321 and low at 1.2307.
EUR/USD remains subdued and bearishly placed on the lower scale of he 1.23 handle and awaits the outcome of Draghi’s press conference post the ECB meeting in European trade later today. Markets will be listening out for potential timings of QE from the Governor of the Central Bank. Analysts at Rabobank explained that there is still a firm market expectation that it is a question of when, not if, this will happen.
“Any suggestion that ECB-QE will be prove to be another Euro acronym that doesn’t achieve real lift-off (as the FT suggested yesterday) will not be received happily: indeed, bespoke baseball cap manufacturers will be waiting tentatively to see what the Draghi press conference delivers”.
In respect of technical levels, Jim Langlands at FX Charts explained, “On the topside, 1.2350/60 will now be the first resistance, which could be tested by some short covering if the ECB does stay on hold. Above there would head up towards 1.2400 and possibly to the 100/200 HMA at around 1.2425/35”.
To the downside, Jim Langlands explained that a break of this well supported handle of 1.23, it could head towards 1.2265 and then below there to 1.2225 (200 Month MA). “Below 1.2225 is the rising trend support at 1.2130, which is also the 50% pivot of the rally from the Euro Oct 2000 low to the July 2008 high and should also provide decent support. Under that we have the July 2012 low at 1.2041 and the June 2010 low 1.1876, which both come ahead of 1.1743, where the Euro was initially pegged to the dollar in January 1999”.
EUR/USD remains subdued and bearishly placed on the lower scale of he 1.23 handle and awaits the outcome of Draghi’s press conference post the ECB meeting in European trade later today. Markets will be listening out for potential timings of QE from the Governor of the Central Bank. Analysts at Rabobank explained that there is still a firm market expectation that it is a question of when, not if, this will happen.
“Any suggestion that ECB-QE will be prove to be another Euro acronym that doesn’t achieve real lift-off (as the FT suggested yesterday) will not be received happily: indeed, bespoke baseball cap manufacturers will be waiting tentatively to see what the Draghi press conference delivers”.
In respect of technical levels, Jim Langlands at FX Charts explained, “On the topside, 1.2350/60 will now be the first resistance, which could be tested by some short covering if the ECB does stay on hold. Above there would head up towards 1.2400 and possibly to the 100/200 HMA at around 1.2425/35”.
To the downside, Jim Langlands explained that a break of this well supported handle of 1.23, it could head towards 1.2265 and then below there to 1.2225 (200 Month MA). “Below 1.2225 is the rising trend support at 1.2130, which is also the 50% pivot of the rally from the Euro Oct 2000 low to the July 2008 high and should also provide decent support. Under that we have the July 2012 low at 1.2041 and the June 2010 low 1.1876, which both come ahead of 1.1743, where the Euro was initially pegged to the dollar in January 1999”.