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Forex: EUR/USD licking its wounds above 1.34

EUR/USD is currently resting above the 1.3400 level, off fresh 9-day lows at 1.3368 printed in early NY trade, following ECB press conference in late London trade. The pair has been more than 12 hours licking its wounds from latest massive 2-day fall since past Friday's NFP when it reached fresh 14-month highs at 1.3711. EUR/USD is down so far -1.8% for the week.

According to BK Asset Management Managing Director Kathy Lien: “Since price stability is the ECB’s number one priority, if the euro gets too strong, it could tip the balance in favor of lower prices, which could push the central bank to talk down the currency,” the analyst notes. From the technical perspective, “The bearish outlook is held until a break of a couple of key rising trendlines, possibly requiring a break below the 1.3170 pivot,” says CMT and FXstreet.com Independent Analyst Fan Yang, who adds: “Without this break, a push back above 1.35 revives the bullish outlook,” the analyst concludes.

Immediate resistance to the upside for EUR/USD shows at current levels as Jan 29 lows 1.3415, followed by Tuesday's lows at 1.3457, and Jan 25/27 highs at 1.3480. To the downside, nearest term support lies at recent session lows 1.3380, followed by yesterday's fresh 9-day lows/Jan 22 highs at 1.3368, and Jan 25 lows at 1.3347.

Forex Flash: Kiwi at 0.87 by year end - BNZ

With NZD/USD last at 0.8357 retracing part of the fall the pair has had since the very start of the week when reached fresh 8-week highs around the 0.8490, down to yesterday's fresh 6-day lows at 0.8297 on a series of bad economic data, Currency Strategist at BNZ Mike Jones wonders if Kiwi “Could hit 0.9000.”
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