5 Mar 2015
EUR/USD to eye 1.1000 post ECB? - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the probable target for EUR/USD into the ECB meeting ahead in the day.
Key Quotes
“Trying to anticipate markets' movements ahead of this news is quite risky, as the EUR/USD pair may bounce sharply on relief following the announcement, particularly considering shorts remain near record highs and the weekly chart is showing that the pair is extremely oversold.”
“But then again, the bearish dominant trend remains firm in place, and the excess of EUR offered will tend to push the pair lower, especially if the US continues to advance in the tightening path.”
“Selling interest will likely surge after the bounce, with the immediate resistance around 1.1250. If the price reaches the level and begins to retreat, it will likely resume the downside, eyeing fresh multiyear lows below 1.1000.”
“If somehow the pair manages to advance beyond the mentioned 1.1250 area, the recovery, boosted by some profit taking, can extend up to 1.1400/40, the ultimate level from where the bearish trend can resume, as a break above it should see the pair correcting further up on a panic run.”
“If on the other hand the initial reaction pushes the pair lower, the main target will be the 1.1000 figure, but further declines are unlikely for Thursday, as the market players will wait for Friday's US employment figures, before taking another step.”
“As said above, the pair is extremely oversold, and would need a strong reason to extend its bearish run sharply this week, named a strong Nonfarm Payroll reading. Once 1.1000 gives up, and if the week ends with the price below such level, 1.0760 August 2003 monthly low, comes as the next bearish target for the weeks ahead.”
Key Quotes
“Trying to anticipate markets' movements ahead of this news is quite risky, as the EUR/USD pair may bounce sharply on relief following the announcement, particularly considering shorts remain near record highs and the weekly chart is showing that the pair is extremely oversold.”
“But then again, the bearish dominant trend remains firm in place, and the excess of EUR offered will tend to push the pair lower, especially if the US continues to advance in the tightening path.”
“Selling interest will likely surge after the bounce, with the immediate resistance around 1.1250. If the price reaches the level and begins to retreat, it will likely resume the downside, eyeing fresh multiyear lows below 1.1000.”
“If somehow the pair manages to advance beyond the mentioned 1.1250 area, the recovery, boosted by some profit taking, can extend up to 1.1400/40, the ultimate level from where the bearish trend can resume, as a break above it should see the pair correcting further up on a panic run.”
“If on the other hand the initial reaction pushes the pair lower, the main target will be the 1.1000 figure, but further declines are unlikely for Thursday, as the market players will wait for Friday's US employment figures, before taking another step.”
“As said above, the pair is extremely oversold, and would need a strong reason to extend its bearish run sharply this week, named a strong Nonfarm Payroll reading. Once 1.1000 gives up, and if the week ends with the price below such level, 1.0760 August 2003 monthly low, comes as the next bearish target for the weeks ahead.”