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30 Jun 2014
EUR/USD rising making ECB’s job tougher
FXStreet (Guatemala) - EUR/USD is trading at 1.3693, up 0.32% on the day, having posted a daily high at 1.3699 and low at 1.3640.
Month end rebalancing demand has likely taken EUR/USD spot into overbought territory here whilst above the 200 DMA for the first time since June ECB meeting. We now turn our attention to the ECB who are running out of ammunition and may have some choices to make going forward. So Draghi may start to come concerned with a rising Euro here. Meanwhile, "EUR/USD short-term technical are bullish, according to Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank who said, “Most technical studies warn of building upside pressure on EUR; opening up a potential test to the 100-day MA at 1.3738. Accordingly for short-term traders we favour being long EUR."
EUR/USD Levels
With spot trading at 1.3693, we can see next resistance ahead at 1.3699 (Daily High), 1.3704 (Weekly Classic R2), 1.3707 (Daily Classic R3), 1.3738 (Daily 100 SMA) and 1.3755 (Weekly Classic R3). Support below can be found at 1.3679 (Daily Classic R2), 1.3676 (Weekly Classic R1), 1.3672 (Daily 200 SMA), 1.3664 (Daily Classic R1) and 1.3661 (Monthly High).
Month end rebalancing demand has likely taken EUR/USD spot into overbought territory here whilst above the 200 DMA for the first time since June ECB meeting. We now turn our attention to the ECB who are running out of ammunition and may have some choices to make going forward. So Draghi may start to come concerned with a rising Euro here. Meanwhile, "EUR/USD short-term technical are bullish, according to Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank who said, “Most technical studies warn of building upside pressure on EUR; opening up a potential test to the 100-day MA at 1.3738. Accordingly for short-term traders we favour being long EUR."
EUR/USD Levels
With spot trading at 1.3693, we can see next resistance ahead at 1.3699 (Daily High), 1.3704 (Weekly Classic R2), 1.3707 (Daily Classic R3), 1.3738 (Daily 100 SMA) and 1.3755 (Weekly Classic R3). Support below can be found at 1.3679 (Daily Classic R2), 1.3676 (Weekly Classic R1), 1.3672 (Daily 200 SMA), 1.3664 (Daily Classic R1) and 1.3661 (Monthly High).