EUR/USD heaviness main theme, ECB nears

By FXstreet.com | Updated August 05, 2014 AAA

FXStreet (Bali) - The heaviness in the strong>EUR/USD has become a regular theme in recent weeks, with the latest decline off 1.3444 (Friday high post US NFP) leading to a new marginal low at 1.3358.

A firm US non-Mfg PMI, coming well above the estimates, was seen as an excellent opportunity by market speculators to add into their USD longs ahead as the sense is that the timing is nearing to start pricing in the potential for a tighter Fed next year.

Ahead of the ECB monetary policy meeting, due on Thursday, "we have the German Factory Orders and US Trade Balance to focus on today, but the market is really going to be looking towards tomorrow’s ECB meeting and Mario Draghi’s press conference", notes Jim Langlands, Founder at FXCharts, who bets for a lower Euro should Draghi "lean towards a dovish tone again..."

In terms of key levels, Jim adds that "the support at 1.3350 (200 WMA) will not last long if Draghi is dovish and the Euro will head towards the next meaningful target at 1.3294 (7 Nov ’13 low)... while on the topside, 1.3400 (100 HMA) will now act as the immediate resistance and I would be doubtful of seeing it much above here today," Jim said.

You May Also Like

Related Forex Analysis
  1. US Dollar Faces Tough Test, Japanese Yen Remains Focus
    Forex News

    US Dollar Faces Tough Test, Japanese Yen Remains Focus

  2. EUR/USD testing highs around 1.2415
    Forex News

    EUR/USD testing highs around 1.2415

  3. AUD/USD Triangulates on H4; EUR/USD, GBP/USD Holding Range Lows
    Forex News

    AUD/USD Triangulates on H4; EUR/USD, GBP/USD Holding Range Lows

  4. German IFO surprised on the upside – BBH
    Forex News

    German IFO surprised on the upside – BBH

  5. EUR undermined by dovish speech from ECB President Draghi – BTMU
    Forex News

    EUR undermined by dovish speech from ECB President Draghi – BTMU

Trading Center