4 Jul 2013
Flash: EUR/USD waiting for Draghi - TD Securities
FXstreet.com (Córdoba) - The ECB just announced that policy rates were held steady, "but the big risk is that they try to talk down rates like the BoE in their press conference and Q&A" starting at 12:30 GMT, says the TD Securities team.
"If that's the case, the risk is that the EUR sees some sharp selling in next couple hours", TD says. "Yesterday's lows in the low 1.29 area should be the first support, but there is even the potential to see fresh cycle lows".
"There is a smaller chance that Draghi comes across slightly less dovish (on decent data recently), and in that case a rise in EURUSD should meet strong resistance at the 50– and 200–day moving averages near 1.3070/80", they conclude.
"If that's the case, the risk is that the EUR sees some sharp selling in next couple hours", TD says. "Yesterday's lows in the low 1.29 area should be the first support, but there is even the potential to see fresh cycle lows".
"There is a smaller chance that Draghi comes across slightly less dovish (on decent data recently), and in that case a rise in EURUSD should meet strong resistance at the 50– and 200–day moving averages near 1.3070/80", they conclude.