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9 Jul 2013
EUR/USD back to lows after S&P
FXstreet.com (Edinburgh) - The euro is now back around lows at 1.2760/55 after S&P lowered Italy’s credit rating to BBB from BBB+, erasing the tepid attempt to the 1.2790 level.
EUR/USD vs. FOMC
Market consensus is slightly biased towards a soft tone in tomorrow’s speech by Chief Bernanke, which would alleviate the increased selling pressure around the euro. However, traders expect Bernanke to acknowledge the firmer pace of the US labour market, which would reignite the demand for the buck. In the opinion of Camilla Sutton, Strategist at Scotiabank, “all technical studies are in sell territory and the downward trend is well established. We expect a near-term test of the ytd low of 1.2746… We continue to maintain that EUR is poised for weakness on relative monetary policy and the growth outlook. We hold a 1.25 year-end target”.
EUR/USD levels to watch
As of writing the pair is retreating 0.77% at 1.2771 with the next support at 1.2740 (low 2013 Apr.4) followed by 1.2700 (psychological level) and finally 1.2679 (61.8% of 1.2042-1.3711). On the flip side, a break above 1.2898 (high Jul.9) would target 1.2916 (high Jul.5) en route to 1.2950 (23.6% of 1.3417-1.2806).
EUR/USD vs. FOMC
Market consensus is slightly biased towards a soft tone in tomorrow’s speech by Chief Bernanke, which would alleviate the increased selling pressure around the euro. However, traders expect Bernanke to acknowledge the firmer pace of the US labour market, which would reignite the demand for the buck. In the opinion of Camilla Sutton, Strategist at Scotiabank, “all technical studies are in sell territory and the downward trend is well established. We expect a near-term test of the ytd low of 1.2746… We continue to maintain that EUR is poised for weakness on relative monetary policy and the growth outlook. We hold a 1.25 year-end target”.
EUR/USD levels to watch
As of writing the pair is retreating 0.77% at 1.2771 with the next support at 1.2740 (low 2013 Apr.4) followed by 1.2700 (psychological level) and finally 1.2679 (61.8% of 1.2042-1.3711). On the flip side, a break above 1.2898 (high Jul.9) would target 1.2916 (high Jul.5) en route to 1.2950 (23.6% of 1.3417-1.2806).