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24 Jun 2013
EUR/USD pressured in early Asia, faces 1.3060-3100 demand
FXstreet.com (Barcelona) - The EUR/USD has opened substantially lower in the Asian trade, with the shared currency being hit by several EUR-negative news over the weekend. EUR/USD is quoted at 1.3095 from a 1.3120 NY close, with lowest at 1.3088.
Fundamental traders push the Euro down
On one hand, the has been a report quoting European Central Bank member and head of the Deutsche Bundesbank Jens Weidmannis saying it is unlikely the central bank will implement a program involving unlimited purchases of government bonds.
"These limitations are a step in the right direction, but they don't resolve the problem that bond purchases result in deteriorated credit worthiness," Mr. Weidmann was quoted by the Dow Jones news-wire as saying.
On the other hand, European Finance Minister failed to break the divisions on how to share the financial burden left behind by the collapse of European banks, with further talks expected on Wednesday.
EUR/USD bearishness set to continue
The case for the bearish bias to persist over the current weekend is quite compelling, as an FXstreet.com poll indicates.However, in the near-term, bearing in mind EUR/USD remains way overextended after losing over 100 pips on average in the past 3 trading days, coupled with the level of demand being faced at 1.3060-3100, a correction towards a retest of 1.3180 -first value area to join the downtrend - should not be discarded. A break below 1.3050 would expose round number 1.30, while on the upside, an upside resolution above 1.3180 sees 1.3240 as next objective.
Fundamental traders push the Euro down
On one hand, the has been a report quoting European Central Bank member and head of the Deutsche Bundesbank Jens Weidmannis saying it is unlikely the central bank will implement a program involving unlimited purchases of government bonds.
"These limitations are a step in the right direction, but they don't resolve the problem that bond purchases result in deteriorated credit worthiness," Mr. Weidmann was quoted by the Dow Jones news-wire as saying.
On the other hand, European Finance Minister failed to break the divisions on how to share the financial burden left behind by the collapse of European banks, with further talks expected on Wednesday.
EUR/USD bearishness set to continue
The case for the bearish bias to persist over the current weekend is quite compelling, as an FXstreet.com poll indicates.However, in the near-term, bearing in mind EUR/USD remains way overextended after losing over 100 pips on average in the past 3 trading days, coupled with the level of demand being faced at 1.3060-3100, a correction towards a retest of 1.3180 -first value area to join the downtrend - should not be discarded. A break below 1.3050 would expose round number 1.30, while on the upside, an upside resolution above 1.3180 sees 1.3240 as next objective.