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6 Jun 2013
EUR/USD around 1.3100, eyes on the ECB
FXstreet.com (Barcelona) - The shared currency is toying with the 1.3100 handle on Thursday, ahead of the ECB monetary policy gathering due in the European midday.
In the opinion of David Song, Currency Analyst at DailyFX, the central bank would leave the refi rate unchanged at 0.5% and may bring the discussion about negative interest rates. “President Mario Draghi may show a greater willingness to purchase Asset-Backed Securities (ABS) in order to encourage private sector lending. In turn, the head-and shoulders pattern in the EURUSD may continue to take shape during June, and we will maintain a bearish outlook for the Euro as the region struggles to emerge from the recession”.
At the moment, the pair is up 0.06% at 1.3102 with the next resistance at 1.3118 (high Jun.5) ahead of 1.3138 (76.4% of 1.3243-1.2796) and finally 1.3194 (high May 8). On the downside, a break below 1.3043 (MA200d) would open the door to 1.2985 (MA10d) en route 1.2961 (MA21d).
In the opinion of David Song, Currency Analyst at DailyFX, the central bank would leave the refi rate unchanged at 0.5% and may bring the discussion about negative interest rates. “President Mario Draghi may show a greater willingness to purchase Asset-Backed Securities (ABS) in order to encourage private sector lending. In turn, the head-and shoulders pattern in the EURUSD may continue to take shape during June, and we will maintain a bearish outlook for the Euro as the region struggles to emerge from the recession”.
At the moment, the pair is up 0.06% at 1.3102 with the next resistance at 1.3118 (high Jun.5) ahead of 1.3138 (76.4% of 1.3243-1.2796) and finally 1.3194 (high May 8). On the downside, a break below 1.3043 (MA200d) would open the door to 1.2985 (MA10d) en route 1.2961 (MA21d).