5 Sep 2013
EUR/USD back to square one, 1.3170
FXstreet.com (Edinburgh) -The shared currency retraced Wednesday’s spike to 1.3220, dragging the EUR/USD back to the comfort zone around 1.3160/70.
EUR/USD focus on the ECB
Big day for the single currency as the ECB will hold its monetary policy meeting. Market consensus expected the central bank to leave the refi rate intact at 0.5% while attention will be on the subsequent press conference by President M.Draghi. Ahead of the meeting, Alvin Pontoh, Macro Strategist at TD Securities, “The problem is that Draghi tried to deliver that message in August and markets ignored him as there is no suggestion the ECB is ready to act to defend its guidance… So we expect to see markets interpret today’s ECB message as hawkish, or at least not dovish enough”.
EUR/USD levels to watch
As of writing the pair is losing 0.25% at 1.3175 with the initial support at 1.3157 (low Sep.4) followed by 1.3145 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3219 (low Aug.29) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).
EUR/USD focus on the ECB
Big day for the single currency as the ECB will hold its monetary policy meeting. Market consensus expected the central bank to leave the refi rate intact at 0.5% while attention will be on the subsequent press conference by President M.Draghi. Ahead of the meeting, Alvin Pontoh, Macro Strategist at TD Securities, “The problem is that Draghi tried to deliver that message in August and markets ignored him as there is no suggestion the ECB is ready to act to defend its guidance… So we expect to see markets interpret today’s ECB message as hawkish, or at least not dovish enough”.
EUR/USD levels to watch
As of writing the pair is losing 0.25% at 1.3175 with the initial support at 1.3157 (low Sep.4) followed by 1.3145 (MA200d) and finally 1.3138 (low Sep.3). On the flip side, a surpass of 1.3219 (low Aug.29) would target 1.3237 (high Sep.2) en route to 1.3255 (high Aug.30).