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9 Sep 2013
EUR/USD higher in early Europe after rising on Friday but still gets no love from ECB
FXstreet.com (Athens)- The EUR/USD opened higher in Asia and still moving upwards on early Europe, but confined in a tight range.
EUR/USD higher ahead of Sentix Investor Confidence but will the rally continue?
The EUR/USD opened higher the week after having dropped for a second week in a row. Elaborating on, the single currency managed to have a “green” day on Friday due to dismal NFP data, but still closed the week lower against the greenback for a second consecutive week, partly on Draghi’s more than expected dovish stance. ECB Draghi seems to remain very cautious about the Euro zone return to growth and not much enthusiastic about recovery in the Euro land. On the opposite side, despite the dismal NFP, the consensus in the market is for the Fed to announce the commencement of gradual tapering in the meeting of 17th and 18th of September. Traders should bear into consideration the Sentix Investor Confidence which will be released at 8.30 GMT hours and a further improvement in sentiment is anticipated.
Technical Outlook on EUR/USD
As long as the view for tapering remains “on”, any potential EUR/USD rallies will be well capped. Despite the great disappointment on Friday’s NFP release, hints from the Fed points to tapering, even in a small gradual scale such as of $15bililion/$20 billion per month. What’s more, the power-horse of Europe as well depicted in the industrial figures released last week, isn’t strong enough. There are political problems in coalition forces in Italy, a third bailout package in Greece seems inevitable and there is also political uncertainty in Cyprus.
According to Karen Jones, Head Technical Analyst at Commerzbank, “EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”. At the time of writing the pair is trading nearly 1.3171, down -0.05%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 and resistance at R1: 1.3245 R2:1.3277 R3: 1.3310, respectively.
EUR/USD higher ahead of Sentix Investor Confidence but will the rally continue?
The EUR/USD opened higher the week after having dropped for a second week in a row. Elaborating on, the single currency managed to have a “green” day on Friday due to dismal NFP data, but still closed the week lower against the greenback for a second consecutive week, partly on Draghi’s more than expected dovish stance. ECB Draghi seems to remain very cautious about the Euro zone return to growth and not much enthusiastic about recovery in the Euro land. On the opposite side, despite the dismal NFP, the consensus in the market is for the Fed to announce the commencement of gradual tapering in the meeting of 17th and 18th of September. Traders should bear into consideration the Sentix Investor Confidence which will be released at 8.30 GMT hours and a further improvement in sentiment is anticipated.
Technical Outlook on EUR/USD
As long as the view for tapering remains “on”, any potential EUR/USD rallies will be well capped. Despite the great disappointment on Friday’s NFP release, hints from the Fed points to tapering, even in a small gradual scale such as of $15bililion/$20 billion per month. What’s more, the power-horse of Europe as well depicted in the industrial figures released last week, isn’t strong enough. There are political problems in coalition forces in Italy, a third bailout package in Greece seems inevitable and there is also political uncertainty in Cyprus.
According to Karen Jones, Head Technical Analyst at Commerzbank, “EUR/USD is holding temporarily at its 200 day ma at 1.3147, we look for this to be eroded shortly. Intraday charts are indicating that rallies should be contained by 1.3240/70 for further losses. We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July)”. At the time of writing the pair is trading nearly 1.3171, down -0.05%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 and resistance at R1: 1.3245 R2:1.3277 R3: 1.3310, respectively.