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14 May 2013
Forex: EUR/USD intensify the decline
FXstreet.com (Barcelona) - The shared currency is accelerating its intraday decline on Tuesday, hovering over the area of 1.2940/50 as the risk aversion is taking over the markets.
“The euro neared our initial target of $1.3030, but the upticks were quick sold. Nevertheless, it is not clear that the upside correction in the euro is over. The market may have gotten a bit ahead of itself in talk of another refi rate cut next month or a move to a negative deposit rate, and the stronger than expected industrial production figures suggest the ECB staff may not alter its economic forecasts very much next month”, commented the analysts at BBH.
At the moment, the pair is retreating 0.10% at 1.2961 and a breach of 1.2936 (61.8% of 1.2747-1.3243) would expose 1.2935 (low May 10) and then 1.2850 (76.4% of Apr. range).
On the flip side, resistance levels align at 1.3051 (high May 10) would open the door to 1.3065 (MA21d) and finally 1.3148 (MA100d).
“The euro neared our initial target of $1.3030, but the upticks were quick sold. Nevertheless, it is not clear that the upside correction in the euro is over. The market may have gotten a bit ahead of itself in talk of another refi rate cut next month or a move to a negative deposit rate, and the stronger than expected industrial production figures suggest the ECB staff may not alter its economic forecasts very much next month”, commented the analysts at BBH.
At the moment, the pair is retreating 0.10% at 1.2961 and a breach of 1.2936 (61.8% of 1.2747-1.3243) would expose 1.2935 (low May 10) and then 1.2850 (76.4% of Apr. range).
On the flip side, resistance levels align at 1.3051 (high May 10) would open the door to 1.3065 (MA21d) and finally 1.3148 (MA100d).