Back
2 Oct 2013
EUR/USD sitting on the fence ahead of ECB
EUR/USD sitting on the fence ahead of ECB
FXstreet.com (Athens) – The EUR/USD is hovering at a relatively tight range since the opening of the Asian trading session, consolidating gains over 1.3520 area.
EUR/USD regains uptrend momentum after profit-taking, stops-triggered in early Asia
The EUR/USD lost uptrend momentum in early Asia mainly due to the fact that tightening stops below the 1.3515 area got triggered, dragging the pair down. Furthermore, we could also not exclude the fact that traders liquidated positions after yesterday’s great uptrend move of the pair amidst gold collapse and rising US yields. Furthermore, lot of analysts suggest that the pair might move even further upwards, as the US default in its own debt might encourage traders to consider that Fed can now delay further tapering, and –all other equal- all long as tapering is “later” than “sooner”, it is very probable that the cross might move higher. On the other hand, the slowdown n euro zone economic activity as widely depicted yesterday by the slight retracement in individual Euro-Zone countries’ PMI figures, resurfaced the concerns that the lack of credit growth in the Euro-Zone has become a drag. Traders should bear in mind what Draghi had said almost two months earlier; the president of ECB had pointed out that “the decline in Euro zone excess reserves”. Therefore, we are probably ahead of another round of LTRO which in any case would be EUR-negative similar to December 2011 and February 2012.
Technical Outlook and Analysis on EUR/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/USD continues to remain under pinned by the 1.3453 August high and we remain unable to rule out further gains at this stage.The TD perfected set up is suggesting that the upside is limited fromhere, but allows for potential move to 1.3585. We have something similar on the 240 minute chart which allows for a maximum of 1.3730. If holding longs, keep stops tight.”
FXstreet.com (Athens) – The EUR/USD is hovering at a relatively tight range since the opening of the Asian trading session, consolidating gains over 1.3520 area.
EUR/USD regains uptrend momentum after profit-taking, stops-triggered in early Asia
The EUR/USD lost uptrend momentum in early Asia mainly due to the fact that tightening stops below the 1.3515 area got triggered, dragging the pair down. Furthermore, we could also not exclude the fact that traders liquidated positions after yesterday’s great uptrend move of the pair amidst gold collapse and rising US yields. Furthermore, lot of analysts suggest that the pair might move even further upwards, as the US default in its own debt might encourage traders to consider that Fed can now delay further tapering, and –all other equal- all long as tapering is “later” than “sooner”, it is very probable that the cross might move higher. On the other hand, the slowdown n euro zone economic activity as widely depicted yesterday by the slight retracement in individual Euro-Zone countries’ PMI figures, resurfaced the concerns that the lack of credit growth in the Euro-Zone has become a drag. Traders should bear in mind what Draghi had said almost two months earlier; the president of ECB had pointed out that “the decline in Euro zone excess reserves”. Therefore, we are probably ahead of another round of LTRO which in any case would be EUR-negative similar to December 2011 and February 2012.
Technical Outlook and Analysis on EUR/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/USD continues to remain under pinned by the 1.3453 August high and we remain unable to rule out further gains at this stage.The TD perfected set up is suggesting that the upside is limited fromhere, but allows for potential move to 1.3585. We have something similar on the 240 minute chart which allows for a maximum of 1.3730. If holding longs, keep stops tight.”