7 Jul 2014
EUR/USD treading water near 1.3600
FXStreet (Edinburgh) - The single currency is looking to consolidate the recent bounce off session lows, taking the EUR/USD back to the vicinity of 1.3600 the figure as markets enter the US session.
EUR/USD poised to remain sidelined?
With the recent Payrolls numbers still hovering over markets and no relevant releases in both the euro area and the US until Wednesday, where the FOMC minutes are due, expectations for volatility in the pair remain pretty flat. In the view of analysts at Westpac Global Strategy Group, “Multi-month, EUR weakness should be driven by: 1) less supportive flow dynamics as signalled by the region’s shrinking basic balance surplus; and 2) near certain prospects for relatively faster growth in the ECB’s balance sheet vs the Fed, especially later this year as TLRTO comes into play. Draghi’s reference to EUR1 trillion in the latter prevented a break of 1.37 so the sell zone may now be the mid-1.36s”.
EUR/USD levels to watch
As of writing the pair is retreating 0.01% at 1.3592 and a breakdown of 1.3576 (low Jun.26) would open the door to 1.3574 (low Jun.23) and then 1.3565 (low Jun.20). On the upside, the initial hurdle lines up at 1.3611 (high Jul.4) followed by 1.3664 (high Jul.3) and finally 1.3677 (200-d MA).
EUR/USD poised to remain sidelined?
With the recent Payrolls numbers still hovering over markets and no relevant releases in both the euro area and the US until Wednesday, where the FOMC minutes are due, expectations for volatility in the pair remain pretty flat. In the view of analysts at Westpac Global Strategy Group, “Multi-month, EUR weakness should be driven by: 1) less supportive flow dynamics as signalled by the region’s shrinking basic balance surplus; and 2) near certain prospects for relatively faster growth in the ECB’s balance sheet vs the Fed, especially later this year as TLRTO comes into play. Draghi’s reference to EUR1 trillion in the latter prevented a break of 1.37 so the sell zone may now be the mid-1.36s”.
EUR/USD levels to watch
As of writing the pair is retreating 0.01% at 1.3592 and a breakdown of 1.3576 (low Jun.26) would open the door to 1.3574 (low Jun.23) and then 1.3565 (low Jun.20). On the upside, the initial hurdle lines up at 1.3611 (high Jul.4) followed by 1.3664 (high Jul.3) and finally 1.3677 (200-d MA).