EUR/USD cautious, near 1.1330

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The shared currency remains in a cautious mode vs. the greenback today, with EUR/USD navigating the lower end of the daily range near 1.1330 so far.

    EUR/USD weaker ahead of ECB

    Spot keeps meandering a tight range since Monday, as market participants remains wary of the potential dovish tone by Mario Draghi at his press conference today.

    The prevailing bias in the Q&A session could most likely test the ability (willingness?) of the Council to modify the ongoing bond-buying programme, either via an extension beyond mid-September 2016 or by increasing the size of the monthly purchases, currently at €60 billion.

    Further releases will see the preliminary Consumer Confidence in the euro region for October (-7.4 exp.), US Initial Claims, Existing Home Sales and the Chicago Fed NAI.

    EUR/USD relevant levels

    As of writing the pair is retreating 0.02% at 1.1337 and a breakdown of 1.1315 (23.6% Fibo of 1.3992-1.0463) would target 1.1255 (55-day ma) en route to 1.1181 (100-day ma). On the flip side, the next hurdle lines up at 1.1438 (downtrend from May’14 top) followed by 1.1500 (psychological handle) and then 1.1714 (high post-PBoC move Aug.24).
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