EUR/USD loses momentum and trims gains

By FXstreet.com | Updated September 03, 2014 AAA

FXStreet (Córdoba) - The spike of the EUR/USD was short-lived as contradictory reports about the rumored ceasefire agreement in Ukraine hit the wires.

The EUR/USD jumped to a 5-day high of 1.3156 as risk appetite surged on the Russia-Ukraine news, but lacked follow-through and pulled back amid new headlines saying Russia denied the deal. At time of writing, the EUR/USD is trading at the 1.3140 zone, still up 0.06% on the day.

Despite broad USD strength seen Tuesday, the euro managed to hold up pretty well, making only marginal new lows. It seems investors are unwilling to take big positions on the pair ahead of the European Central Bank meeting Thursday. Expectations of further easing measures have been growing ever since Draghi’s speech at Jackson Hole.

Meanwhile, the US will release the nonfarm payrolls report Friday, with consensus pointing to a 200K gain following a rise of 209K in July.

EUR/USD levels to watch

In terms of technical levels, immediate supports could be found at 1.3109 (2014 low Sep 2), 1.3104 (Sep 6 2013 low) and 1.3100 (psychological level) ahead of 1.3065 (Jul 18 2013 low). On the other hand, resistances are seen at 1.3156 (intraday high), 1.3178 (10-day SMA) and the 1.3195/1.3200 zone (Aug 29 high/psychological level).

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