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After moving back and forth on ECB news EUR/USD stalls at 1.2780 - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik comments on EUR/USD moves on contradicting reports on ECB bond buying earlier today, before the pair stalled in the 1.2780 area.

Key quotes

"The EUR/USD was submitted to a short term selloff, following news the ECB will be buying corporate bonds for troubled economies such as Spain and Italy, down to 1.2745 on the day."

"But following the initial headline from a big news agency, another round of non supported news hit the wires stating the Central Bank has not yet put the issue of buying corporate bonds on the agenda for its December policy meeting."

"With the back and forth, the pair managed to recover some ground, yet stalled at 1.2780 price zone, limited by the critical Fibonacci level around which the pair has been hovering most of this week."

"Short term, the 1 hour chart shows now indicators below their midlines, and 20 SMA a few pips above mentioned Fibonacci level, while the 4 hours chart shows a mild negative tone, with price below a bearish 20 SMA and indicators turning south in neutral territory."

"Further declines below 1.2740 should lead to an extension towards 1.2700 while if below this last, the bearish movement will likely accelerate. Above 1.2790 however, chances turn back north, towards 1.2845 static resistance zone."

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