The selling interest is picking up pace around the EUR at the end of the session on Tuesday, sending EUR/USD to 2-day lows around 1.1540.
EUR/USD remains fragile
The earlier bull attempt beyond 1.1600 the figure lacked conviction and prompted sellers to step into the markets and drive spot to current lows in the 1.1540 neihghbourhood. Absent data on Wednesday in the euro area, investors’ focus will remain on the critical ECB meeting on Thursday, as speculations continue to build up regarding the potential size of the QE programme. The vast majority of rumours place the EGB purchases by the European Central Band around €500 billion, although higher figures are not ruled out.
“Our year-end forecast is for EUR to close the year at 1.13; which would equate to a fundamentally driven 7% year-over-year decline or a 20% decline since its May 2014 high of 1.3993”, argued strategists at Scotiabank.
EUR/USD levels to watch
As of writing the pair is down 0.52% at 1.1548 and a break below 1.1530 (low jan.19) would target 1.1460 (11-year low Jan. 16) en route to 1.1445 (low Nov.11 2003). On the flip side, the initial hurdle lines up at 1.1649 (high Jan.16) followed by 1.1721 (10-d MA) and finally 1.1792 (high Jan.15).
EUR/USD remains fragile
The earlier bull attempt beyond 1.1600 the figure lacked conviction and prompted sellers to step into the markets and drive spot to current lows in the 1.1540 neihghbourhood. Absent data on Wednesday in the euro area, investors’ focus will remain on the critical ECB meeting on Thursday, as speculations continue to build up regarding the potential size of the QE programme. The vast majority of rumours place the EGB purchases by the European Central Band around €500 billion, although higher figures are not ruled out.
“Our year-end forecast is for EUR to close the year at 1.13; which would equate to a fundamentally driven 7% year-over-year decline or a 20% decline since its May 2014 high of 1.3993”, argued strategists at Scotiabank.
EUR/USD levels to watch
As of writing the pair is down 0.52% at 1.1548 and a break below 1.1530 (low jan.19) would target 1.1460 (11-year low Jan. 16) en route to 1.1445 (low Nov.11 2003). On the flip side, the initial hurdle lines up at 1.1649 (high Jan.16) followed by 1.1721 (10-d MA) and finally 1.1792 (high Jan.15).
