EUR/USD jumps to fresh highs amid ECB reports

By FXstreet.com | August 27, 2014 AAA

FXStreet (Córdoba) - Following fresh yearly lows and a sideways phase, the EUR/USD gathered pace and stretched to new daily highs as media reports suggest ECB action is not expected next week.

Following Draghi’s speech in Jackson Hole, investors have been betting the ECB will take further easing measures, but according to Reuters sources, it won't happen in September. “Sources tell Reuters new action next week unlikely but outcome depends on August inflation data”, said Jamie Coleman, analyst at FXBeat. “That data is due out on Friday and is expected to fall to 0.3% y/y in August from 0.4% in July”.

The EUR/USD reached a high of 1.3205 so far, and it remains to be seen whether the shared currency will be able to consolidate above the psychological level. At time of writing, the EUR/USD is trading at 1.3198, 0.24% above its opening price, having bounced from a lower low of 1.3152 during the Asian session.

EUR/USD technical levels

If the EUR/USD breaks decisively above 1.3200, next resistances are seen 1.3238 (Aug 22 closing price) and the 1.3295/1.3300 area (Aug 22 high/psychological level). On teh other hand, supports could be found at 1.3152 (Aug 27 low), 1.3104 (Sep 6 2013 low) and 1.3100 (psychological level).

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