EUR/USD testing the upside at the 1.32 handle

By FXstreet.com | Updated August 27, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3199, up 0.24% on the day, having posted a daily high at 1.3211 and low at 1.3153.

The EUR/USD printed new 11 month lows but was lifted again on the German import prices that fell and GfK consumer confidence that remains close to its multi-year highs. Analysts a TD Securities also explained that sideline commentary helped to stabilize the currency. “ German FinMin Schaeuble suggested that President Draghi’s comments have been over-interpreted; while Jean-Claude Trichet suggested that the since the ECB has already announced “two major decisions (TLRTO and ABS) which have not yet been implemented; therefore before having new weaponry in place you’d have to apply what you already have”."

EUR/USD awaits ECB

The analysts at TD Securities noted that the ECB will meet on September 4th and there is building expectation for a stronger policy response at that meeting with many calling for the launch of QE and others expecting another interest rate cut. “Recognition by President Draghi that medium-term inflation expectations have fallen is an important shift and has been one the key ECB criteria for judging if there is the need for a stronger response. We expect EUR to continue to trend lower, targeting 1.30 by year-end."

EUR/USD levels

Support levels: 1.3160 1.3125 1.3090

Resistance levels: 1.3200 1.3220 1.3250

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