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12 Jun 2013
EUR/USD looking to establish higher ground above 1.3300
FXstreet.com (Barcelona) - The EUR/USD finished the day sharply higher, surpassing resistance at 1.3300 and closing up 57 pips at 1.3312
EUR/USD shrugs off dovish ECB comments
Although economic data during the session was fairly quiet, Kathy Lien of BK Asset Management went on to note the EUR/USD rally was even more impressive given the fact the pair was able to shake off dovish ECB Rhetoric. “The euro hit a fresh 3-month high against the U.S. dollar despite dovish comments from ECB officials. According to Asmussen, the central bank is prepared to purchase unlimited government bonds via Outright Monetary Transactions and will sell bonds purchased once the Monetary Transmission mechanism is unblocked,” Lien commented. In discussing further details, Lien went on to note that although there may not be an immediate need to employ the measures, discussion of the policy itself is a dovish development.
EUR/USD technical set up remains strong
Chris Capre of 2nd Skies Forex noted the EUR/USD has been able to find substantial follow through from last week, and that current technical developments remain constructive. “After ending last week with a nice price action squeeze, the pair has held up nicely from the daily inside bar as I discussed in my market commentary, rejecting intraday off the dynamic support and 4hr 20ema, noted Capre. In going on to discuss potential trade ideas, Capre went on to note a few levels where market participants might look to buy dips. “With the pair holding towards the highs, and no sellers in sight, it seems the pair is looking for higher prices. Traders wanting to get long can look for intraday rejections at the dynamic support around 1.3250 and 1.3200 targeting 1.3357 and 1.3450,” Capre concluded.
EUR/USD shrugs off dovish ECB comments
Although economic data during the session was fairly quiet, Kathy Lien of BK Asset Management went on to note the EUR/USD rally was even more impressive given the fact the pair was able to shake off dovish ECB Rhetoric. “The euro hit a fresh 3-month high against the U.S. dollar despite dovish comments from ECB officials. According to Asmussen, the central bank is prepared to purchase unlimited government bonds via Outright Monetary Transactions and will sell bonds purchased once the Monetary Transmission mechanism is unblocked,” Lien commented. In discussing further details, Lien went on to note that although there may not be an immediate need to employ the measures, discussion of the policy itself is a dovish development.
EUR/USD technical set up remains strong
Chris Capre of 2nd Skies Forex noted the EUR/USD has been able to find substantial follow through from last week, and that current technical developments remain constructive. “After ending last week with a nice price action squeeze, the pair has held up nicely from the daily inside bar as I discussed in my market commentary, rejecting intraday off the dynamic support and 4hr 20ema, noted Capre. In going on to discuss potential trade ideas, Capre went on to note a few levels where market participants might look to buy dips. “With the pair holding towards the highs, and no sellers in sight, it seems the pair is looking for higher prices. Traders wanting to get long can look for intraday rejections at the dynamic support around 1.3250 and 1.3200 targeting 1.3357 and 1.3450,” Capre concluded.