The pair erased the weekly gains closed with mild losses and closed near to 50wsma. Last week’s euro economic data pressures the euro. The German ZEW economic sentiment further Setback for Economic Sentiment.
Especially, after the ECB Nowotny speech the pair lost the momentum during yesterday’s European session.
ECB Nowotny said the ECB’s inflation expectations clearly not reached. The ECB cannot influence oil prices. Core inflation is clearly lower than the target. The European Central Bank is using the policy tools available. An additional set of tools is necessary, including structured instruments.
The brand new week wraps with the high impact of economic events like ECB press conference and PMI numbers. The Fed’s uncertainty pressures on Central banks. The ECB, RBA and RBNZ like the lower euro and dollar. The coming ECB press conference might pressure the euro much lower levels from the cmp.
“The ECB’s October meeting is for watching. Draghi’s message will be dovish, but it’s not the time to act yet”, said Holger Sandte, chief European analyst at Nordea Bank.
Nowotny’s comments mean that “further ECB stimulus as soon as next Thursday certainly cannot be ruled out,” said Howard Archer of IHS Global Insight.
CFTC: USD net long position fell to $ 20.97 billion, a record low of more than a year.
As per economists, the euro might pressure in the coming days.
Trading support finds at 1.1330, 1.1300 and 1.1260
Resistance seems at 1.1400, 1.1430 and 1.1460
The bulls need to hold 1.1330 during today’s session to retain the strength. Last Friday we forecast the euro was formed a top at 1.1500 levels.
The pair thrice rejected at 200dema lacks follow up day buying. Until the price close above 200dema sell on rise favors the trend targets 1.1250, 1.1180 and 1.1100 levels.
The pair has been consolidating between 1.1400 and 1.1340 levels
We recommend fresh buying above 1.1400 only, strong buying momentum backs above 1.1420 towards 1.1430 and 1.1460.
Intraday selling opens below 1.1320 possible targets at 1.3110, 1.1280 and 1.1260.