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17 Dec 2013
EUR/USD dips to daily lows
FXstreet.com (Córdoba) - Following a shallow lift in the wake of strong German ZEW survey, the EUR/USD turned lower and fell to fresh daily lows ahead of the New York opening.
The USD picked up momentum and advanced against the euro and the pound, dragging EUR/USD to a low of 1.3744 in recent dealings. However, the pair remains trapped in a narrow range probably reflecting the market's cautiousness ahead of Fed's meeting. At time of writing, the EUR/USD is trading at the 1.3750 zone, slightly below its opening price.
Not much action expected ahead of FOMC
"Sometimes there is price action on no news, but today there is news and minimal price action as the US dollar is confined to fairly narrow ranges in mostly lackluster activity", says the BBH analyst team. "There have been several developments, but given the holiday mood, and ahead of tomorrow's FOMC decision, one should not expect much".
EUR/USD short-term levels
In terms of technical levels, the EUR/USD could find immediate supports at 1.3744/38 (Dec 17 & 16 lows), 1.3725 (10-day SMA) and 1.3708 (Dec 13 low). On the flip side, resistances are seen at 1.3800 (psychological level), 1.3811 (Dec 11 high) and 1.3832 (2013 high Oct 25).
The USD picked up momentum and advanced against the euro and the pound, dragging EUR/USD to a low of 1.3744 in recent dealings. However, the pair remains trapped in a narrow range probably reflecting the market's cautiousness ahead of Fed's meeting. At time of writing, the EUR/USD is trading at the 1.3750 zone, slightly below its opening price.
Not much action expected ahead of FOMC
"Sometimes there is price action on no news, but today there is news and minimal price action as the US dollar is confined to fairly narrow ranges in mostly lackluster activity", says the BBH analyst team. "There have been several developments, but given the holiday mood, and ahead of tomorrow's FOMC decision, one should not expect much".
EUR/USD short-term levels
In terms of technical levels, the EUR/USD could find immediate supports at 1.3744/38 (Dec 17 & 16 lows), 1.3725 (10-day SMA) and 1.3708 (Dec 13 low). On the flip side, resistances are seen at 1.3800 (psychological level), 1.3811 (Dec 11 high) and 1.3832 (2013 high Oct 25).