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Forex: EUR/USD squeezed back to 1.2850

FXstreet.com (Barcelona) - In reaction to ECB Draghi’s press conference, the EUR/USD fell from 1.2836 to 1.2757, a fresh 2013 low. But the market considered that the EUR was too cheap compared to the greenback and bids brought it back to the opening price at 1.2848, erasing all daily losses and attempting to move higher now. Behind such recovery was Draghi’s forceful defense of Open Market Transactions and his dismissal of redenomination risk set off a serious squeeze, according to FXbriefs.com analyst Jamie Coleman.

ECB’s Draghi left the door open to policy easing but was vague about what kind of action to take. Mario Draghi reminded that the ECB cannot fight the crisis on its own and that EU Member States should carry on with structural reforms in order to stimulate competitiveness and growth and reduce deficits. Also, he said that the bail-in to Cyprus will not be used as a template for other Eurozone countries.

“Negative tone dominates on the 1h/4h studies and supports the scenario of further slide and retest of 1.2750 base, while corrective rallies stay capped under 1.2850. Key upside barrier lies at 1.2875, also 200 day MA”, wrote Windsor Brokers analyst Slobodan Drvenica.

Forex Flash: USD/CAD sell on rallies – TD Securities

With no domestic data on tap and plenty of Fed-speak today ahead of tomorrow’s data deluge, TD Securities analysts favor neutral range-trading in USD/CAD in the near-term. “From a technical point of view, we have been bearish USD/CAD over the past week or two but price trends suggest that the recent improvement may be stalling”; wrote analysts Shaun Osborne and Greg Moore, looking to sell USD rallies at the moment though “and we still rather think that the 1.0180/85 area should be firm short-term resistance”.
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Forex: EUR/JPY jumps above 123.00

The Euro is rallying across the market following the Draghi press conference and against the Japanese Yen, the pair has jumped more than 100 pips in the last few minutes from 121.60 to breaks above 122.00 and 123.00 to trade at the highest level since March 25 at 123.40.
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