EUR/USD licking its wounds on a bearish bias

By FXstreet.com | July 03, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3609, moving in a tight range of handful of pips in quiet and low volume markets.

EUR/USD is settled here after losing out to the greenbacks performance by half a cent in the US post a benign ECB in Europe. Sean Callow, analyst at Westpac Banking Corporation explained that the ECB remained on hold, but provided more detail around the targeted LTRO package that will be implemented in September. “Notably, Draghi suggested these cheap loans could total EUR 1 trillion, well above market talk. This reinforces our multi-month 1.32 target on EUR/USD as Fed and ECB balance sheets diverge, but short term there probably isn’t much further EUR downside. Draghi also announced that a written record of Council meetings would be produced prior to the subsequent meeting, and that from 2015 meetings would be held every 6 weeks, rather than monthly as at present”.

EUR/USD Levels

With spot trading at 1.3609, we can see next resistance ahead at 1.3610 (Weekly Low), (Daily Open), 1.3612 (Daily High), 1.3620 (Daily Classic S2) and 1.3625 (Hourly 20 EMA). Support below can be found at 1.3608 (Daily Low), 1.3599 (Daily Classic S3), 1.3597 (Weekly Classic S1), 1.3596 (Yesterday's Low) and 1.3546 (Weekly Classic S2).

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