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6 Jun 2014
EUR shorts unwound on ECB - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet commented on the EUR After the latest ECB releases.
Key Quotes:
“The EUR has bottomed out with the news only to put fresh highs following in the following sessions”.
“And this June meeting has not been and exception, and even worse, as it took the pair just a couple hours to revert its fall”.
“The ECB cut its main rate to 0.15%, overnight bank deposits to -0.10% and announced another round of LTRO, along with QE”.
“Initial impact drove the pair down to 1.3502, turning into a bear trap: US indexes opened higher, risk appetite took over the markets, and the EUR/USD began recovering. Market players realized QE is like a new OTM: a promise made that will hardly get materialized. Moreover, the ECB recon it has shot all its bullets, and there’s little else to do at this point”.
“Slowly but steadily the EUR/USD advanced up to 1.3669, breaking above the 200 DMA and holding for now above”.
“The hourly chart shows price stalled below the 61.8% retracement of this year rally, with price advancing above its moving averages, all still together in a tight range, and indicators heading higher near overbought readings”.
“In the 4 hours chart the wild swings were not enough to make indicators move away from their midlines, aiming higher in neutral territory. If shorts continue to be unwind a break above 1.3680 should favor an upward continuation up to 1.3740/50 area, in the near term”.
“Support levels: 1.3640 1.3570 1.3520”.
“Resistance levels: 1.3680 1.3745 1.3790”.
Key Quotes:
“The EUR has bottomed out with the news only to put fresh highs following in the following sessions”.
“And this June meeting has not been and exception, and even worse, as it took the pair just a couple hours to revert its fall”.
“The ECB cut its main rate to 0.15%, overnight bank deposits to -0.10% and announced another round of LTRO, along with QE”.
“Initial impact drove the pair down to 1.3502, turning into a bear trap: US indexes opened higher, risk appetite took over the markets, and the EUR/USD began recovering. Market players realized QE is like a new OTM: a promise made that will hardly get materialized. Moreover, the ECB recon it has shot all its bullets, and there’s little else to do at this point”.
“Slowly but steadily the EUR/USD advanced up to 1.3669, breaking above the 200 DMA and holding for now above”.
“The hourly chart shows price stalled below the 61.8% retracement of this year rally, with price advancing above its moving averages, all still together in a tight range, and indicators heading higher near overbought readings”.
“In the 4 hours chart the wild swings were not enough to make indicators move away from their midlines, aiming higher in neutral territory. If shorts continue to be unwind a break above 1.3680 should favor an upward continuation up to 1.3740/50 area, in the near term”.
“Support levels: 1.3640 1.3570 1.3520”.
“Resistance levels: 1.3680 1.3745 1.3790”.