24 Nov 2014
EUR/USD toying with 1.2400
FXStreet (Edinburgh) - The common currency is posting marginal gains vs. the US dollar at the beginning of the week, taking EUR/USD back to the vicinity of 1.2400 the figure.
EUR/USD focus on IFO
The pair is slowly recovering part of the ground lost last Friday following the dovish appreciations by President Draghi, coming up from the 1.2370/65 band to challenge the 1.2400 handle. Ahead in the session, the German IFO indicator will take centre stage in Euroland while the services PMI gauged by Markit will be in the limelight across the pond. Arne Rasmussen, Chief Analyst at Danske Bank, noted “in our view the very soft rhetoric from the ECB is a short-term game changer for EUR/USD after the recent consolidation. We expect further downside near term on divergent monetary policy targeting EUR/USD at 1.22 in 3M and 1.20 in 6M”.
EUR/USD key levels
At the moment the pair is advancing 0.03% at 1.2396 and a breakout of 1.2482 (10-d MA) would aim for 1.2525 (21-d MA) and then 1.2589 (30-d MA). On the flip side, the initial support aligns at 1.2358 (2014 low Nov.7) followed by 1.2342 (low Aug.21 2012) and then 1.2300 (psychological handle).
EUR/USD focus on IFO
The pair is slowly recovering part of the ground lost last Friday following the dovish appreciations by President Draghi, coming up from the 1.2370/65 band to challenge the 1.2400 handle. Ahead in the session, the German IFO indicator will take centre stage in Euroland while the services PMI gauged by Markit will be in the limelight across the pond. Arne Rasmussen, Chief Analyst at Danske Bank, noted “in our view the very soft rhetoric from the ECB is a short-term game changer for EUR/USD after the recent consolidation. We expect further downside near term on divergent monetary policy targeting EUR/USD at 1.22 in 3M and 1.20 in 6M”.
EUR/USD key levels
At the moment the pair is advancing 0.03% at 1.2396 and a breakout of 1.2482 (10-d MA) would aim for 1.2525 (21-d MA) and then 1.2589 (30-d MA). On the flip side, the initial support aligns at 1.2358 (2014 low Nov.7) followed by 1.2342 (low Aug.21 2012) and then 1.2300 (psychological handle).