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4 Jun 2013
EUR/USD consolidates below 1.3100
FXstreet.com (Barcelona) - The 1.3100 handle seems more distant as we average the US session on Tuesday, feeling intensified as the greenback continues to gather traction.
“We have been saying for a while now that the ECB needs to do more to support the Euro area economy… The difference in economic outcomes between the EA and US boils down largely to the difference in monetary policy stances, in particular the overly tight policy maintained by the ECB. Unfortunately, we are unlikely to see the ECB act further on Thursday, though President Draghi is likely to maintain a dovish tone. We reiterate our risk-neutral short EUR basket trade recommendation”, suggested Sebastien Galy, Strategist at Societe Generale.
As of writing, EUR/USD is down 0.04% at 1.3070 with support levels at 1.3037 (MA200d) followed by 1.2961 (MA21d) and then 1.2956 (low Jun.3). On the upside, a breakout of 1.3108 (high Jun.3) would open the door to 1.3194 (high May 8) and then 1.3243 (high May 1).
“We have been saying for a while now that the ECB needs to do more to support the Euro area economy… The difference in economic outcomes between the EA and US boils down largely to the difference in monetary policy stances, in particular the overly tight policy maintained by the ECB. Unfortunately, we are unlikely to see the ECB act further on Thursday, though President Draghi is likely to maintain a dovish tone. We reiterate our risk-neutral short EUR basket trade recommendation”, suggested Sebastien Galy, Strategist at Societe Generale.
As of writing, EUR/USD is down 0.04% at 1.3070 with support levels at 1.3037 (MA200d) followed by 1.2961 (MA21d) and then 1.2956 (low Jun.3). On the upside, a breakout of 1.3108 (high Jun.3) would open the door to 1.3194 (high May 8) and then 1.3243 (high May 1).