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31 Oct 2013
EUR/USD in weekly lows sub-1.3670
FXstreet.com (Edinburgh) -The selling pressure is accelerating now around the shared currency, pushing EUR/USD on its way to challenge 2-week lows around 1.3660.
EUR/USD weaker on EMU data
The pair intensified its decline after consumer prices in the euro area hit a 4-year low, expanding at an annual pace of 0.7% vs. 1.1% expected. The unemployment figures did not help the sentiment either, staying put at 12.2% during September vs. 12.0 forecasted. Analyst Martin van Vliet at ING commented, “With the stronger euro acting as an additional disinflationary force, we would not be surprised if ECB-President Draghi’s introductory statement next week cites the recent appreciation of the euro as a downside risk to inflation. We also expect him to reaffirm the ECB’s commitment to keep interest rates at record lows for an “extended period”, while keeping the door to a further rate cut or a new LTRO wide open”.
EUR/USD levels to watch
At the moment the pair is down 0.46% at 1.3672 facing the next support at 1.3653 (50% of 1.3472-1.3833) ahead of 1.3651 (low Oct.21) and then 1.3600 (psychological level). On the upside, a break above 1.3739 (high Oct.31) would expose 1.3787 (high Oct.30) and finally 1.3818 (high Oct.28).
EUR/USD weaker on EMU data
The pair intensified its decline after consumer prices in the euro area hit a 4-year low, expanding at an annual pace of 0.7% vs. 1.1% expected. The unemployment figures did not help the sentiment either, staying put at 12.2% during September vs. 12.0 forecasted. Analyst Martin van Vliet at ING commented, “With the stronger euro acting as an additional disinflationary force, we would not be surprised if ECB-President Draghi’s introductory statement next week cites the recent appreciation of the euro as a downside risk to inflation. We also expect him to reaffirm the ECB’s commitment to keep interest rates at record lows for an “extended period”, while keeping the door to a further rate cut or a new LTRO wide open”.
EUR/USD levels to watch
At the moment the pair is down 0.46% at 1.3672 facing the next support at 1.3653 (50% of 1.3472-1.3833) ahead of 1.3651 (low Oct.21) and then 1.3600 (psychological level). On the upside, a break above 1.3739 (high Oct.31) would expose 1.3787 (high Oct.30) and finally 1.3818 (high Oct.28).