3 Dec 2014
EUR/USD puts 1.2300 to the test
FXStreet (Edinburgh) - The single currency extends its pessimism over the European evening, dragging EUR/USD to test the critical 1.2300 support ahead of the Fed’s Beige Book.
EUR/USD attention to the ECB
The pair extends its descent to levels last seen in August 2012, challenging the 1.2300 handle amidst an increasing bid tone around the US dollar. Poor data from the euro area add to the generalized bearish stance of the EUR, with mounting speculations regarding the chance of further easing measures (QE?) to be announced by the central bank. However, there is also the possibility of a relief-bounce in the single currency if the central bank disappoints market expectations. Lee Hardman, Currency Analyst at BTMU, adds. “The seasonal patter is also favourable for euro strength in the near-term as it has tended to strengthen against the US dollar heading into year-end over the last twenty years”
EUR/USD levels to watch
At the moment the pair is losing 0.60% at 1.2306 and a break below 1.2295 (low Aug.20 2012) would aim for 1.2288 (low Aug.17 2012) and then 1.2256 (low Aug.16 2012). On the flip side, the immediate hurdle lines up at 1.2419 (low Dec.1) ahead of 1.2449 (10-d MA) and finally 1.2476 (high Dec.2).
EUR/USD attention to the ECB
The pair extends its descent to levels last seen in August 2012, challenging the 1.2300 handle amidst an increasing bid tone around the US dollar. Poor data from the euro area add to the generalized bearish stance of the EUR, with mounting speculations regarding the chance of further easing measures (QE?) to be announced by the central bank. However, there is also the possibility of a relief-bounce in the single currency if the central bank disappoints market expectations. Lee Hardman, Currency Analyst at BTMU, adds. “The seasonal patter is also favourable for euro strength in the near-term as it has tended to strengthen against the US dollar heading into year-end over the last twenty years”
EUR/USD levels to watch
At the moment the pair is losing 0.60% at 1.2306 and a break below 1.2295 (low Aug.20 2012) would aim for 1.2288 (low Aug.17 2012) and then 1.2256 (low Aug.16 2012). On the flip side, the immediate hurdle lines up at 1.2419 (low Dec.1) ahead of 1.2449 (10-d MA) and finally 1.2476 (high Dec.2).