5 Sep 2013
EUR/USD still under pressure ahead of ECB meeting
FXstreet.com (Athens) - The EUR/USD is trading downwards ahead of ECB and G20 meeting, but still remains above its 200-day moving average.
Will the EUR/USD finally manage to break its 200-day MA at 1.3144?
The pair is under pressure again, after a short relief in Wednesday’s trading session. The global equities rally rounded out by the biggest advance for the US Indexes in two weeks, pushed downwards the American dollar on Wednesday, i.e. the single currency got a small relief yesterday. Still, risk over the next 48 hours is of great significance and should be considered more trend defining. The G20 meeting doesn’t have a definitely positive or negative outcome, but Friday’s NFPs do. For today’s ECB meeting, there are obviously many members of the Governing Council who want to convince the market that rate hikes are still an “illusion”.
Technical outlook on EUR/USD
According to Karen Jones, Head Technical Analyst in Commerzbank, “EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July).” The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart.. Daily pivot point support and resistance can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 R1: 1.3245 R2:1.3277 R3: 1.3310
Will the EUR/USD finally manage to break its 200-day MA at 1.3144?
The pair is under pressure again, after a short relief in Wednesday’s trading session. The global equities rally rounded out by the biggest advance for the US Indexes in two weeks, pushed downwards the American dollar on Wednesday, i.e. the single currency got a small relief yesterday. Still, risk over the next 48 hours is of great significance and should be considered more trend defining. The G20 meeting doesn’t have a definitely positive or negative outcome, but Friday’s NFPs do. For today’s ECB meeting, there are obviously many members of the Governing Council who want to convince the market that rate hikes are still an “illusion”.
Technical outlook on EUR/USD
According to Karen Jones, Head Technical Analyst in Commerzbank, “EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July).” The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart.. Daily pivot point support and resistance can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 R1: 1.3245 R2:1.3277 R3: 1.3310