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2 May 2013
Forex: EUR/USD testing session highs
FXstreet.com (Barcelona) - The shared currency is accelerating its correction higher on Thursday, gyrating around 1.3175/80 ahead of the ECB gathering due later.
“The EUR has rallied into the ECB meeting; this is likely to have discouraged short sellers and squeezed some of the short speculators. As such, with less global risk appetite, we may see a rate cut today by the ECB see the EUR retrace gains and fall back to around 1.30”, suggested G.Gibbs, FX Strategist at RBS.
At the moment, the cross is down 0.08% at 1.3169 with the next support at 1.3120 (hourly high Apr.30) ahead of 1.3065 (MA21d) and finally 1.2988 (low Apr.25).
On the flip side, a break above 1.3243 (high May 1) would aim for 1.3319 (high Feb.25) en route to 1.3343 (61.8% of Feb-Apr slide).
“The EUR has rallied into the ECB meeting; this is likely to have discouraged short sellers and squeezed some of the short speculators. As such, with less global risk appetite, we may see a rate cut today by the ECB see the EUR retrace gains and fall back to around 1.30”, suggested G.Gibbs, FX Strategist at RBS.
At the moment, the cross is down 0.08% at 1.3169 with the next support at 1.3120 (hourly high Apr.30) ahead of 1.3065 (MA21d) and finally 1.2988 (low Apr.25).
On the flip side, a break above 1.3243 (high May 1) would aim for 1.3319 (high Feb.25) en route to 1.3343 (61.8% of Feb-Apr slide).