11 Nov 2013
EUR/USD amidst anemic movement in Asia session
FXstreet.com (Athens) – The EUR/USD was lethargic in Asian trading session heading amidst a very confined area (1.3343-1.3363), but with the momentum bias well remaining in a bearish mode.
EUR/USD seems to be closer to a major trend reversal; ECB’s Coeure to reiterate that ECB still holds out the possibility for further easing
The EUR/USD was caught amidst a tight congestion trading range since the kick off of the Wellington trading session, but the backdrop of the single currency indicates that the cross will probably continue to set up its bearish stance. Briefly, markets have already switched to a short outlook pertaining to the cross, as according to the CFTC's COT data, futures market net speculative eur long position dropped to 33K versus long 71K (prior) in the week through Nov 5. What’s more, ECB’s Coeure reiterated in the past weekend what ECB’s President Draghi reiterated last Thursday that ““The ECB is still holding out the possibility for further easing if needed.” Despite the fact the profit taking on short positions regarding the cross and the today’s soft calendar data day, the cross seems to be still on bearish trend shift. Traders should also bear upon major consideration that the USD/CHF has been since last Thursday on a mini rally well above 0.9200 zone, and taken for granted that the correlation between the EUR/USD and USD/CHF is heavily inversely correlated (-0.93), there might be an additional pressure to the EUR/USD.
Technical Aspects on the EUR/USD
The EUR/USD is trading today amidst a tight range (1.3345-1.3365, testing the 100-daily MA at 1.3346), ahead of an almost absent calendar-data day (many thanks to the partial US holiday and the bank holiday of many Euro land’s countries). Traders should pay much attention to the downwards side to the 1.3294 level, where is the 50% Fibonacci retracement of the uptrend July – October rise. In case, the 1.3294 level is decently breached, the investors interest should then focus to the 200-daily SMA which is currenty laying at 1.3215 area.
EUR/USD seems to be closer to a major trend reversal; ECB’s Coeure to reiterate that ECB still holds out the possibility for further easing
The EUR/USD was caught amidst a tight congestion trading range since the kick off of the Wellington trading session, but the backdrop of the single currency indicates that the cross will probably continue to set up its bearish stance. Briefly, markets have already switched to a short outlook pertaining to the cross, as according to the CFTC's COT data, futures market net speculative eur long position dropped to 33K versus long 71K (prior) in the week through Nov 5. What’s more, ECB’s Coeure reiterated in the past weekend what ECB’s President Draghi reiterated last Thursday that ““The ECB is still holding out the possibility for further easing if needed.” Despite the fact the profit taking on short positions regarding the cross and the today’s soft calendar data day, the cross seems to be still on bearish trend shift. Traders should also bear upon major consideration that the USD/CHF has been since last Thursday on a mini rally well above 0.9200 zone, and taken for granted that the correlation between the EUR/USD and USD/CHF is heavily inversely correlated (-0.93), there might be an additional pressure to the EUR/USD.
Technical Aspects on the EUR/USD
The EUR/USD is trading today amidst a tight range (1.3345-1.3365, testing the 100-daily MA at 1.3346), ahead of an almost absent calendar-data day (many thanks to the partial US holiday and the bank holiday of many Euro land’s countries). Traders should pay much attention to the downwards side to the 1.3294 level, where is the 50% Fibonacci retracement of the uptrend July – October rise. In case, the 1.3294 level is decently breached, the investors interest should then focus to the 200-daily SMA which is currenty laying at 1.3215 area.