6 Jun 2013
EUR/USD eases to 1.3110
FXstreet.com (Barcelona) - The EUR/USD upside is running out of steam at the moment, although the pair keeps the upbeat tone ahead of the ECB meeting due later.
The selling interest has intensified as of late, as horrible data from German Factory Orders in April is adding to the sentiment. “We suspect Draghi would prefer this event to be uneventful, but the risks are skewed towards mild financial market disappointment. While we do not expect any change to rates there is a decent minority looking for a cut, and while clearly there is some risk of another cut, we suspect there will be disappointment on confirmation of unchanged rates”, commented Marcin Budkiewicz, Strategist at TD Securities.
As of writing, the pair is up 0.15% at 1.3114 and a breakout of 1.3131 (high Jun.6) would open the door to 1.3138 (76.4% of 1.3243-1.2796) en route to 1.3194 (high May 8). On the flip side, support levels line up at 1.3075 (low Jun6) followed by 1.3053 (low Jun.5) and finally 1.3043 (MA200d).
The selling interest has intensified as of late, as horrible data from German Factory Orders in April is adding to the sentiment. “We suspect Draghi would prefer this event to be uneventful, but the risks are skewed towards mild financial market disappointment. While we do not expect any change to rates there is a decent minority looking for a cut, and while clearly there is some risk of another cut, we suspect there will be disappointment on confirmation of unchanged rates”, commented Marcin Budkiewicz, Strategist at TD Securities.
As of writing, the pair is up 0.15% at 1.3114 and a breakout of 1.3131 (high Jun.6) would open the door to 1.3138 (76.4% of 1.3243-1.2796) en route to 1.3194 (high May 8). On the flip side, support levels line up at 1.3075 (low Jun6) followed by 1.3053 (low Jun.5) and finally 1.3043 (MA200d).