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May 31, 2013
EUR/USD decline halted around 1.2965/70
FXstreet.com (Barcelona) - Seems the intraday drop of the shared currency has bottomed out around the 1.2965/70 region on Friday, grabbing some pace afterwards to the 1.2990/95 area.
Dovish comments by ECB’s Visco regarding the European Central Bank would be ready to ease further have been weighting on the pair, dragging it from the proximities of 1.3040. Frank Oland, Analyst at Danske Bank, commented, “The move yesterday also underlined that despite all the talk about Fed tapering of QE, EUR/USD is still caught in a tight 1.28-1.31 range. We believe this will also be the case for the next couple of months although we acknowledge that risk is skewed to the downside for EUR/USD”.
The pair is now losing 0.40% at 1.2996 and a violation of 1.2965 (MA21d) would target 1.2934 (low May 30) en route to 1.2931 (MA10d). On the other hand, resistance levels line up at 1.3062 (high May 30) ahead of 1.3072 (61.8% of 1.3243-1.2796) and then 1.3114 (MA100d).
Dovish comments by ECB’s Visco regarding the European Central Bank would be ready to ease further have been weighting on the pair, dragging it from the proximities of 1.3040. Frank Oland, Analyst at Danske Bank, commented, “The move yesterday also underlined that despite all the talk about Fed tapering of QE, EUR/USD is still caught in a tight 1.28-1.31 range. We believe this will also be the case for the next couple of months although we acknowledge that risk is skewed to the downside for EUR/USD”.
The pair is now losing 0.40% at 1.2996 and a violation of 1.2965 (MA21d) would target 1.2934 (low May 30) en route to 1.2931 (MA10d). On the other hand, resistance levels line up at 1.3062 (high May 30) ahead of 1.3072 (61.8% of 1.3243-1.2796) and then 1.3114 (MA100d).