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4 Dec 2014
All eyes on ECB for EUR/USD – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that the markets are waiting for the ECB economic decision to set the tone for the EUR/USD pair which is consolidation in a tight range.
Key Quotes
“The EUR/USD consolidates its latest losses in a tight range, having extended its decline during Asian hours, a few pips, to a fresh 2-year low of 1.2295”
“Nevertheless, ECB statement is expected to be meaningfully dovish, which should keep the pressure on the EUR/USD.”
“Technically, the 4 hours chart shows price developing well below a bearish 20 SMA, while indicators point slightly higher near oversold readings, far from supporting a bullish run at the time being.”
“But today is not about what technical readings may say, but what will Mario Draghi do. If somehow the ECB's head is less dovish than expected, the pair can correct higher up to former year low of 1.2360: if the level holds, then the downside will probably resume, yet if the advance extends, it will probably trigger some stops and the rally can extend up to 1.2400 price zone.”
“To the downside, 1.2270 is the support to break as a downward acceleration below it should see the pair approaching 1.2220/30 price zone before settling ahead of US NFP data on Friday.”
Key Quotes
“The EUR/USD consolidates its latest losses in a tight range, having extended its decline during Asian hours, a few pips, to a fresh 2-year low of 1.2295”
“Nevertheless, ECB statement is expected to be meaningfully dovish, which should keep the pressure on the EUR/USD.”
“Technically, the 4 hours chart shows price developing well below a bearish 20 SMA, while indicators point slightly higher near oversold readings, far from supporting a bullish run at the time being.”
“But today is not about what technical readings may say, but what will Mario Draghi do. If somehow the ECB's head is less dovish than expected, the pair can correct higher up to former year low of 1.2360: if the level holds, then the downside will probably resume, yet if the advance extends, it will probably trigger some stops and the rally can extend up to 1.2400 price zone.”
“To the downside, 1.2270 is the support to break as a downward acceleration below it should see the pair approaching 1.2220/30 price zone before settling ahead of US NFP data on Friday.”