Forex: EUR/USD slide pauses at 200-day EMA
Forex pairs in this Article »
EUR/USD
FXstreet.com (San Francisco) - The euro lost 0.6% against its U.S. counterpart overnight Tuesday on broad safe-haven dollar demand after the International Monetary Fund (IMF) cut its forecasts for global growth, encouraging traders to scale back their appetite for risk.
The mentioned EURUSD drop reached a 6-day low of 1.2857 where it found support at the 200-day EMA before closing the North American session with a second daily loss at 1.2885. So far in early Asia, EURUSD is holding relatively flat at 1.2880.
If the market stages a recovery in the hours ahead, the 1.2930 level is likely where the first line of sellers will appear, according to Valeria Bednarik, Chief Analyst at FXstreet.com. Above there, she says that 1.2970 is the next strong resistance level.
"On the other hand, a break 1.2840 will confirm the negative bias for the pair with scope then to test area, 38.2% retracement of the latest bullish daily run," explains Ms. Bednarik. The October 1 trough at 1.2800 may attract buyers, and, below there, the 50-day EMA offers support at 1.2755.
The BBH Global Currency Strategy Team's recent comments about actions from the IMF: "All in all, we believe that the IMF is probably being too optimistic still in its global growth and trade forecasts. While we do not foresee sharp markdowns ahead like we saw back in 2008 and 2009, global dynamics seem to point to further slowing ahead."
The mentioned EURUSD drop reached a 6-day low of 1.2857 where it found support at the 200-day EMA before closing the North American session with a second daily loss at 1.2885. So far in early Asia, EURUSD is holding relatively flat at 1.2880.
If the market stages a recovery in the hours ahead, the 1.2930 level is likely where the first line of sellers will appear, according to Valeria Bednarik, Chief Analyst at FXstreet.com. Above there, she says that 1.2970 is the next strong resistance level.
"On the other hand, a break 1.2840 will confirm the negative bias for the pair with scope then to test area, 38.2% retracement of the latest bullish daily run," explains Ms. Bednarik. The October 1 trough at 1.2800 may attract buyers, and, below there, the 50-day EMA offers support at 1.2755.
The BBH Global Currency Strategy Team's recent comments about actions from the IMF: "All in all, we believe that the IMF is probably being too optimistic still in its global growth and trade forecasts. While we do not foresee sharp markdowns ahead like we saw back in 2008 and 2009, global dynamics seem to point to further slowing ahead."
Free Annual Reports
