5 Sep 2013
EUR/USD strikes back ahead of ECB
FXstreet.com (Athens)- The EUR/USD managed to overcome 1.3200 area, as Mario Draghi of the ECB has claimed to have given far greater detail in terms of the future outlook for monetary policy in the Euro zone.
EUR/USD still capped by 1.3200 area ahead ECB minutes, despite solid Germany factory data
Earlier, the Euro zone power horse, i.e. Germany released the factory orders data which were better in yearly basis (+4.8%, versus 2.7% expected and 4.3% the prior one). Despite the constant encouraging data on behalf of Germany, the pair didn’t manage to overcome again the 1.3200 area. What’s more, there were some solid comments from European officials that might boost the demand for the single currency, such as of Euro group President Dijsselbloem saying that “recovery remains fragile but there is reason for some optimism.” Apart from ECB, where the focus will be placed not on what Mario Draghi will do (which is expected to be nothing), but what he will say, there is also a warm up for tomorrow’s nonfarm payroll figure (coming in the form of the ADP private payrolls today). Last but not least, in the afternoon US also releases ISM non-manufacturing figures which are expected to decline slightly to 55.0.
Technical Outlook on EUR/USD
According to Karen Jones, Head Technical Analyst at 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)”. At the time of writing the pair is trading nearly 1.3202, down -0.02%. The FXstreet.com Trend Index shows the pair to be slightly bullish 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
EUR/USD still capped by 1.3200 area ahead ECB minutes, despite solid Germany factory data
Earlier, the Euro zone power horse, i.e. Germany released the factory orders data which were better in yearly basis (+4.8%, versus 2.7% expected and 4.3% the prior one). Despite the constant encouraging data on behalf of Germany, the pair didn’t manage to overcome again the 1.3200 area. What’s more, there were some solid comments from European officials that might boost the demand for the single currency, such as of Euro group President Dijsselbloem saying that “recovery remains fragile but there is reason for some optimism.” Apart from ECB, where the focus will be placed not on what Mario Draghi will do (which is expected to be nothing), but what he will say, there is also a warm up for tomorrow’s nonfarm payroll figure (coming in the form of the ADP private payrolls today). Last but not least, in the afternoon US also releases ISM non-manufacturing figures which are expected to decline slightly to 55.0.
Technical Outlook on EUR/USD
According to Karen Jones, Head Technical Analyst at 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)”. At the time of writing the pair is trading nearly 1.3202, down -0.02%. The FXstreet.com Trend Index shows the pair to be slightly bullish 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