13 Jan 2015
EUR/USD stabilized around 1.1780
FXStreet (Edinburgh) - EUR/USD remains on the back footing on Tuesday, now attempting a consolidation pattern around 1.1785/80.
EUR/USD supported by 1.1750
The selling interest prevailed pretty much during the whole European session, although sellers could not break below ytd lows around the mid-1.1700s so far. However, spot will remain under heavy pressure in light of the decision of the European Court of Justice on the ECB’s OMT programme due tomorrow, EMU’s consumer prices during December on Friday and the crucial ECB meeting on January 22nd, in which according to rumours the central bank could announce further monetary stimulus in the form of a QE programme. Strategists at BTMU suggested the pair could face further weakness in the upcoming periods, in their words: “The widening divergence in monetary policies is likely to encourage an even weaker euro in the year ahead. We expect EURUSD to fall towards the 1.1000 level resulting in the euro becoming even more deeply undervalued against the US dollar by between 10% and 15%”.
EUR/USD important levels
At the moment the pair is losing 0.51% at 1.1776 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 supported by 1.1750
The selling interest prevailed pretty much during the whole European session, although sellers could not break below ytd lows around the mid-1.1700s so far. However, spot will remain under heavy pressure in light of the decision of the European Court of Justice on the ECB’s OMT programme due tomorrow, EMU’s consumer prices during December on Friday and the crucial ECB meeting on January 22nd, in which according to rumours the central bank could announce further monetary stimulus in the form of a QE programme. Strategists at BTMU suggested the pair could face further weakness in the upcoming periods, in their words: “The widening divergence in monetary policies is likely to encourage an even weaker euro in the year ahead. We expect EURUSD to fall towards the 1.1000 level resulting in the euro becoming even more deeply undervalued against the US dollar by between 10% and 15%”.
EUR/USD important levels
At the moment the pair is losing 0.51% at 1.1776 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).