13 Jan 2015
EUR/USD threatening 2015 lows
FXStreet (Edinburgh) - The depreciation of the EUR continues unabated on Tuesday, now pushing EUR/USD closer to year-to-day lows around 1.1750.
EUR/USD remains vulnerable
The sentiment towards the common currency remains fragile amidst the resurgence of USD strength, and in light of the decision of the European Court of Justice on the ECB’s OMT programme due on Wednesday. Despite the decision is not-binding, it will be a good gauge of the legality of purchasing sovereign bonds by the central bank. Market participants will not only follow the mentioned decision but also the subsequent meeting between Merkel, Draghi and Schauble in Berlin, which will surely provide another catalyst for the prices. In the opinion of analysts at BTMU, “uncertainty surrounding the sovereign QE is now primarily related to the timing of the announcement and how the programme will be structured rather than whether it will happen”.
EUR/USD important levels
At the moment the pair is losing 0.65% at 1.1771 with the next support at 1.1754 (2015 low Jan.8) followed by 1.1640 (low Nov. 2005) and then 1.1376 (low Nov.2003). On the upside, a break above 1.1871 (high Jan.12) would expose 1.1897 (high Jan.7) and finally 1.1916 (10d MA).
EUR/USD remains vulnerable
The sentiment towards the common currency remains fragile amidst the resurgence of USD strength, and in light of the decision of the European Court of Justice on the ECB’s OMT programme due on Wednesday. Despite the decision is not-binding, it will be a good gauge of the legality of purchasing sovereign bonds by the central bank. Market participants will not only follow the mentioned decision but also the subsequent meeting between Merkel, Draghi and Schauble in Berlin, which will surely provide another catalyst for the prices. In the opinion of analysts at BTMU, “uncertainty surrounding the sovereign QE is now primarily related to the timing of the announcement and how the programme will be structured rather than whether it will happen”.
EUR/USD important levels
At the moment the pair is losing 0.65% at 1.1771 with the next support at 1.1754 (2015 low Jan.8) followed by 1.1640 (low Nov. 2005) and then 1.1376 (low Nov.2003). On the upside, a break above 1.1871 (high Jan.12) would expose 1.1897 (high Jan.7) and finally 1.1916 (10d MA).