31 Jan 2014
EUR/USD extends losses on ECB headlines
FXstreet.com (Córdoba) - The EUR/USD extended losses to fresh 2-month lows sub 1.3500 during the New York session amid Eurozone headlines.
While the latest US data came in line with expectations, the EUR/USD was weighed by headlines suggesting the Bundesbank would favor to end sterilization of the ECB bond purchases in order to flood the economy with cash, just as the Fed does with QE.
The EUR/USD fell to a fresh 2-month low of 1.3481 before finding support and it is currently trading at 1.3495, recording a 0.4% loss Friday, the fourth in a row.
EUR/USD eyes 1.3440
"The negative tone among stocks and the risk aversion sentiment continue to favor the downside in the pair, with market players now eyeing key 1.3440 static support zone", says Valeria Bednarik, chief analyst at FXStreet.
Bednarik sees immediate supports at 1.3470, 1.3440 and 1.3400, while she places resistances at 1.3520, 1.3550 and 1.3590.
While the latest US data came in line with expectations, the EUR/USD was weighed by headlines suggesting the Bundesbank would favor to end sterilization of the ECB bond purchases in order to flood the economy with cash, just as the Fed does with QE.
The EUR/USD fell to a fresh 2-month low of 1.3481 before finding support and it is currently trading at 1.3495, recording a 0.4% loss Friday, the fourth in a row.
EUR/USD eyes 1.3440
"The negative tone among stocks and the risk aversion sentiment continue to favor the downside in the pair, with market players now eyeing key 1.3440 static support zone", says Valeria Bednarik, chief analyst at FXStreet.
Bednarik sees immediate supports at 1.3470, 1.3440 and 1.3400, while she places resistances at 1.3520, 1.3550 and 1.3590.