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24 Apr 2013
Forex: EUR/USD easing from highs
FXstreet.com (Barcelona) - The shared currency is now giving away some ground after hitting session highs in levels sub 1.3040, rapidly leaving behind the worrisome results from the German IFO.
Regarding the increasing market chat about a rate cut by the ECB next week, Analyst Jacqui Douglas at TD Securities commented, “The biggest argument against a cut to the refi rate is the fact that it would have next to no impact on economic growth… However, given that a large part of the problem in the Eurozone is lack of demand stemming from uncertainty, a rate cut from the ECB could help at the margin to support confidence”.
At the moment, the pair is advancing 0.16% at 1.3019 with the next resistance at 1.3085 (high Apr.23) ahead of 1.3130 (high Apr.19) and then 1.3202 (high Apr.16).
On the downside, a break below 1.2972 (MA21d) would the target 1.2963 (low Apr.8) en route to 1.2940 (MA200d).
Regarding the increasing market chat about a rate cut by the ECB next week, Analyst Jacqui Douglas at TD Securities commented, “The biggest argument against a cut to the refi rate is the fact that it would have next to no impact on economic growth… However, given that a large part of the problem in the Eurozone is lack of demand stemming from uncertainty, a rate cut from the ECB could help at the margin to support confidence”.
At the moment, the pair is advancing 0.16% at 1.3019 with the next resistance at 1.3085 (high Apr.23) ahead of 1.3130 (high Apr.19) and then 1.3202 (high Apr.16).
On the downside, a break below 1.2972 (MA21d) would the target 1.2963 (low Apr.8) en route to 1.2940 (MA200d).