19 Dec 2014
EUR/USD on the way for a weekly decline
FXStreet (Mumbai) - The EUR/USD pair continues to trade near 8-day lows after falling off from a high of 1.2569 post Federal Reserve chair. Yellen tilted slightly towards the hawkish side in her press conference.
The pair currently trades 0.07% lower at 1.2278 levels, compared to the previous session’s close at 1.2286 levels. The pair failed yet another time to sustain above 1.25 levels after Fed chair. Yellen expressed an increased possibility of a sooner-than-expected policy normalization in the US if the economy continues to recover rapidly. Meanwhile, the European Central Bank (ECB) is widely expected to come up with its own version of sovereign QE in Q1 2015.
The pair may move higher today if the German Gfk consumer confidence survey for January prints higher than the median estimate of 8.8. The ECB will also announce 3 year LTRO repayment data, that may question ECB’s commitment to increase its balance sheet size to early 2012 levels. However, the pair is unlikely to rise above the previous week’s close of 1.2460 levels as the relative policy divergence between the Fed and the E CB would continue to weigh over the single currency.
EUR/USD Technical Levels
The pair has an immediate support located at 1.2266, under which the pair may fall to 1.2224 (200 month SMA). Meanwhile, resistance is seen at 1.23 and 1.2357 levels.
The pair currently trades 0.07% lower at 1.2278 levels, compared to the previous session’s close at 1.2286 levels. The pair failed yet another time to sustain above 1.25 levels after Fed chair. Yellen expressed an increased possibility of a sooner-than-expected policy normalization in the US if the economy continues to recover rapidly. Meanwhile, the European Central Bank (ECB) is widely expected to come up with its own version of sovereign QE in Q1 2015.
The pair may move higher today if the German Gfk consumer confidence survey for January prints higher than the median estimate of 8.8. The ECB will also announce 3 year LTRO repayment data, that may question ECB’s commitment to increase its balance sheet size to early 2012 levels. However, the pair is unlikely to rise above the previous week’s close of 1.2460 levels as the relative policy divergence between the Fed and the E CB would continue to weigh over the single currency.
EUR/USD Technical Levels
The pair has an immediate support located at 1.2266, under which the pair may fall to 1.2224 (200 month SMA). Meanwhile, resistance is seen at 1.23 and 1.2357 levels.