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28 Jan 2015
EUR/USD finds support around 1.1320
FXStreet (Edinburgh) - The shared currency keeps the negative tone vs. the greenback on Wednesday, with EUR/USD now hovering over the mid-1.1300s.
EUR/USD ignored German data
The re-emergence of the US dollar following two sessions on the back footing is prompting the current drop in the pair, re-visiting the 1.1350 area and coming down from yesterday’s peaks beyond 1.1420. Earlier data in Germany showed the consumer confidence spiking to 13-year highs and import prices contracting more than consensus, although the pair largely ignored these results, focused instead on the FOMC meeting.
“A consolidation or corrective bounce in the EUR in the next few weeks (which might last 1-2 months) would not surprise; but neither would such a rebound alter our longer-term bearishness on the EUR”, argued analysts at TD Securities.
EUR/USD levels to watch
As of writing the pair is down 0.25% at 1.1350 with the next support at 1.1306 (100-h MA) followed by 1.1224 (low Jan.27) and then 1.1098 (11-year low Jan.26). On the upside, a break above 1.1423 (high Jan.27) would open the door to 1.1444 (200-h MA) and finally 1.1453 (10-d MA).
EUR/USD ignored German data
The re-emergence of the US dollar following two sessions on the back footing is prompting the current drop in the pair, re-visiting the 1.1350 area and coming down from yesterday’s peaks beyond 1.1420. Earlier data in Germany showed the consumer confidence spiking to 13-year highs and import prices contracting more than consensus, although the pair largely ignored these results, focused instead on the FOMC meeting.
“A consolidation or corrective bounce in the EUR in the next few weeks (which might last 1-2 months) would not surprise; but neither would such a rebound alter our longer-term bearishness on the EUR”, argued analysts at TD Securities.
EUR/USD levels to watch
As of writing the pair is down 0.25% at 1.1350 with the next support at 1.1306 (100-h MA) followed by 1.1224 (low Jan.27) and then 1.1098 (11-year low Jan.26). On the upside, a break above 1.1423 (high Jan.27) would open the door to 1.1444 (200-h MA) and finally 1.1453 (10-d MA).