7 Feb 2014
EUR/USD weighed by German court statement
FXStreet (Córdoba) - Following a phase of consolidation around 1.3600, the EUR/USD came under pressure and fell to fresh daily lows after the German Constitutional Court decided to refer the decision on the ECB's OMT program to the European Court of Justice.
The German court said it saw substantial reasons to suggest the Outright Monetary Transactions (OMT) exceeded the ECB's mandate and thus infringes the powers of the Member States.
The news interrupted calm ahead of the nonfarm payrolls and sent the EUR/USD to a low of 1.3551 before it found support. At time of writing, the EUR/USD is trading at the 1.3565 area, recording a 0.2% loss on the day. German industrial production data is due for 11:00GMT ahead of the US NFP at 13:30GMT.
EUR/USD levels to watch
In terms of technical levels, immediate supports could be found at 1.3551 (Feb 7 low), 1.3500 (psychological level) and 1.3476 (Feb 3 low). On the upside, resistances are seen at 1.3593 (Feb 7 high), 1.3600 (psychological level/100-day SMA) and 1.3618 (Feb 6 high).
The German court said it saw substantial reasons to suggest the Outright Monetary Transactions (OMT) exceeded the ECB's mandate and thus infringes the powers of the Member States.
The news interrupted calm ahead of the nonfarm payrolls and sent the EUR/USD to a low of 1.3551 before it found support. At time of writing, the EUR/USD is trading at the 1.3565 area, recording a 0.2% loss on the day. German industrial production data is due for 11:00GMT ahead of the US NFP at 13:30GMT.
EUR/USD levels to watch
In terms of technical levels, immediate supports could be found at 1.3551 (Feb 7 low), 1.3500 (psychological level) and 1.3476 (Feb 3 low). On the upside, resistances are seen at 1.3593 (Feb 7 high), 1.3600 (psychological level/100-day SMA) and 1.3618 (Feb 6 high).