EUR/USD has been paring back some ground on a broadly weaker dollar across the board today. There has been a number of data releases for the pair out of Europe today, but the market will be looking to the FOMC minutes and Bernanke speaking later on. The market is expecting a less hawkish tone and hat has weighed on the dollar.
EUR/USD focus downside
Karen Jones at Commerzbank said the focus is now on the downside and in particular the 1.2740 April low. “Below 1.2740 we target 1.2661 November low en route to the 1.2050 200 MONTH ma. Rallies will have little to no impact while capped by the 1.3055/1.3103 resistance (55 and 200 day moving averages and the high from the 28th June). Initial resistance lies 1.2900/11 (38.2% retracement) and the Elliott wave count on the daily chart continues to suggest a retracement to 1.2940-1.2985 ahead of failure, but this is looking less likely.”