Forex: EUR/USD holds above 1.3050; Is the crisis over?
Forex pairs in this Article »
EUR/USD
FXstreet.com (San Francisco) - The Euro is trading calm around the 1.3080 level following an attempt of recovery from intra-day low at 1.3055. The EURUSD was pressured on the early American session on the back of rumors that France had received a downgrade warning from a rating agency. The first 2013 rumor...
The pair is currently down 0.24% at 1.3084 and a dip below 1.3018 (low Jan.7) would open the door to 1.2998 (low Jan.4) and then 1.2996 (low Dec.12). On the other hand, resistance levels are located at 1.3149 (Tenkan Sen line) followed by 1.3164 and 1.3190 (high Jan.3). In any case, Any upside correction is likely to be met with "formidable barriers at 1.3164," as Richard Lee said in a recent report.
On the other hand, the OCBC Bank sees a near term upside for the EURUSD. Emmanuel Ng of OCBC Bank notes that EUR made some headway against the dollar ahead of this week's ECB. In the interim he is adhering to a top heavy posture for the pair with the nearest upside resistance expected at 1.3200. To the downside, the pair may find interim support around 1.3000, with the 55-day MA (1.2991) also in the vicinity. However, a breach beyond this level may open the way to the 200-day MA (1.2780) multi-session.
Are we saved?
Early today, European Commission President José Manuel Barroso comments that the Euro has been saved and the Euro crisis is a thing of the past. In a Guardian's interview, Barroso said: "I think we can say that the existential threat against the euro has essentially been overcome. In 2013 the question won't be if the euro will, or will not, implode.
In the same line, Angela Merkel added a condiment to Barroso's quote saying that the "worst part of European crisis is over."
Barroso and Merkel's words are, as the best, disturbing. Eurozone unemployment reached a record high of 11.8% in November, the European Commission reported on Tuesday. Data also showed an increase in youth unemployment to 24.4%. Spain unemployment is above 25% with youth people around 50%. Is the crisis over? FXstreet.com analyst Katarzyna Komorowska asks for.
On the other side of the Atlantic, Wall Street closed lower as investors are awaiting for corporate results. The first company has been Alcoa with its today's after-hours release topping sales and showing earnings in line with forecasts.
The day ahead
Moving forward to Wednesday, the most relevant release will be the euro zone GDP for the fourth quarter, expected to contract 0.1%, ahead of the German Industrial Production during November (-2.6% MoM and -3.7% YoY prev).
The pair is currently down 0.24% at 1.3084 and a dip below 1.3018 (low Jan.7) would open the door to 1.2998 (low Jan.4) and then 1.2996 (low Dec.12). On the other hand, resistance levels are located at 1.3149 (Tenkan Sen line) followed by 1.3164 and 1.3190 (high Jan.3). In any case, Any upside correction is likely to be met with "formidable barriers at 1.3164," as Richard Lee said in a recent report.
On the other hand, the OCBC Bank sees a near term upside for the EURUSD. Emmanuel Ng of OCBC Bank notes that EUR made some headway against the dollar ahead of this week's ECB. In the interim he is adhering to a top heavy posture for the pair with the nearest upside resistance expected at 1.3200. To the downside, the pair may find interim support around 1.3000, with the 55-day MA (1.2991) also in the vicinity. However, a breach beyond this level may open the way to the 200-day MA (1.2780) multi-session.
Are we saved?
Early today, European Commission President José Manuel Barroso comments that the Euro has been saved and the Euro crisis is a thing of the past. In a Guardian's interview, Barroso said: "I think we can say that the existential threat against the euro has essentially been overcome. In 2013 the question won't be if the euro will, or will not, implode.
In the same line, Angela Merkel added a condiment to Barroso's quote saying that the "worst part of European crisis is over."
Barroso and Merkel's words are, as the best, disturbing. Eurozone unemployment reached a record high of 11.8% in November, the European Commission reported on Tuesday. Data also showed an increase in youth unemployment to 24.4%. Spain unemployment is above 25% with youth people around 50%. Is the crisis over? FXstreet.com analyst Katarzyna Komorowska asks for.
On the other side of the Atlantic, Wall Street closed lower as investors are awaiting for corporate results. The first company has been Alcoa with its today's after-hours release topping sales and showing earnings in line with forecasts.
The day ahead
Moving forward to Wednesday, the most relevant release will be the euro zone GDP for the fourth quarter, expected to contract 0.1%, ahead of the German Industrial Production during November (-2.6% MoM and -3.7% YoY prev).
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