Forex: EUR/USD inching down towards 1.3000
Forex pairs in this Article »
EUR/USD
FXstreet.com (San Francisco) - Last week, EURUSD rallied above the 1.3000 mark on an improvement in risk appetite, and the pair is under early pressure as the trading week gets underway, looking set to test bids at the figure.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "fears [Greece] may drag Europe back to the worse of its 3-year crisis, spark some risk aversion across the board, and will likely be the main theme for the upcoming days."
So far in Asia, price has traded down around 20 pips from the close overnight Friday to as low as 1.3006, with immediate support noted at 1.2995 (Friday low), then 1.2965 (Oct 2 high) and 1.2935 (Sep 12 high). To the upside, October 4 peak at 1.3030 may attract some offers, along with Friday's peak at 1.3070 then 1.3145 (38.2%, 1.4940/1.2041).
As Ms. Bednarik observes, "With Japan on holidays, Asian session may be more quiet than usual," she says. "In the 4 hours chart the technical outlook is still bullish with the pair standing above the 1.3000 mark. Below this last, short term sellers may attempt to send price lower, with 1.2970 as next strong support; once below this last bears will lead the way for the day."
Kathy Lien, Managing Director at BK Asset Management notes that the EURUSD's break above 1.30 is "psychologically significant" and "market participants are wondering how much further the euro can rise," she says in a research note.
"Technically, the 1.3171 September high in the EURUSD is major resistance and a break above that point would be needed to break the EURUSD out of its recent consolidative mode," says Ms. Lien. However, she goes on to say forecast that, if the currency pair first breaks below 1.29t, then there is open scope for further losses.
Australia's ASX is quoted down a modest 1.48 points at 4,492.90. EURUSD last trades at 1.3010.
According to Valeria Bednarik, Chief Analyst at FXstreet.com, "fears [Greece] may drag Europe back to the worse of its 3-year crisis, spark some risk aversion across the board, and will likely be the main theme for the upcoming days."
So far in Asia, price has traded down around 20 pips from the close overnight Friday to as low as 1.3006, with immediate support noted at 1.2995 (Friday low), then 1.2965 (Oct 2 high) and 1.2935 (Sep 12 high). To the upside, October 4 peak at 1.3030 may attract some offers, along with Friday's peak at 1.3070 then 1.3145 (38.2%, 1.4940/1.2041).
As Ms. Bednarik observes, "With Japan on holidays, Asian session may be more quiet than usual," she says. "In the 4 hours chart the technical outlook is still bullish with the pair standing above the 1.3000 mark. Below this last, short term sellers may attempt to send price lower, with 1.2970 as next strong support; once below this last bears will lead the way for the day."
Kathy Lien, Managing Director at BK Asset Management notes that the EURUSD's break above 1.30 is "psychologically significant" and "market participants are wondering how much further the euro can rise," she says in a research note.
"Technically, the 1.3171 September high in the EURUSD is major resistance and a break above that point would be needed to break the EURUSD out of its recent consolidative mode," says Ms. Lien. However, she goes on to say forecast that, if the currency pair first breaks below 1.29t, then there is open scope for further losses.
Australia's ASX is quoted down a modest 1.48 points at 4,492.90. EURUSD last trades at 1.3010.
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