1 Dec 2014
EUR/USD capped beyond 1.2500
FXStreet (Edinburgh) - The shared currency is now hovering over 1.2480/75 at the end of the NA session on Monday, with EUR/USD coming down from session peaks above 1.2500 the figure.
EUR/USD focus on ECB
The pair managed to rebound from lows near 1.2420 almost one big-figure to the 1.2510 area bolstered by a generalized offered tone in the greenback. The low-1.2500s yet remains quite a tough barrier amongst EUR-bulls, although the ECB meeting on Thursday carries the potential for either a breakout of that resistance zone or a deep retracement to test recent lows in the 1.2360 region. Lee Hardman, Currency Analyst at BTMU, suggested, “if the ECB temporarily disappoints investor expectations by not delivering further easing measures as soon as December, it could further increase the likelihood that the euro may stage a corrective rebound heading into year-end”.
EUR/USD levels to watch
At the moment the pair is up 0.43% at 1.2494 with the next resistance at 1.2524 (high Nov.27) ahead of 1.2527 (30-d MA) and finally 1.2532 (high Nov.26). On the flip side, a breakdown of 1.2402 (low Nov.25) would open the door to 1.2358 (2014 low Nov.7) and then 1.2342 (low Aug.21 2012).
EUR/USD focus on ECB
The pair managed to rebound from lows near 1.2420 almost one big-figure to the 1.2510 area bolstered by a generalized offered tone in the greenback. The low-1.2500s yet remains quite a tough barrier amongst EUR-bulls, although the ECB meeting on Thursday carries the potential for either a breakout of that resistance zone or a deep retracement to test recent lows in the 1.2360 region. Lee Hardman, Currency Analyst at BTMU, suggested, “if the ECB temporarily disappoints investor expectations by not delivering further easing measures as soon as December, it could further increase the likelihood that the euro may stage a corrective rebound heading into year-end”.
EUR/USD levels to watch
At the moment the pair is up 0.43% at 1.2494 with the next resistance at 1.2524 (high Nov.27) ahead of 1.2527 (30-d MA) and finally 1.2532 (high Nov.26). On the flip side, a breakdown of 1.2402 (low Nov.25) would open the door to 1.2358 (2014 low Nov.7) and then 1.2342 (low Aug.21 2012).