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12 Dec 2014
EUR/USD to post weekly gains
FXStreet (Mumbaii) - The single currency has been resilient throughout the week amid risk aversion in the global markets, falling crude oil prices and increasing possibility of the European Central Bank going for sovereign QE in Q1 2015.
The EUR/USD pair trades 0.35% higher today at 1.2451 levels, thereby posting a weekly gain of 1.3%. Moreover, the pair would still end up with weekly gains, even if the pair dips into the red for the day from the current level of 1.2451.
The single currency continued to recover from a low of 1.2248 throughout the week on concerns that the ECB would find it difficult to push its balance sheet level to the intended level of EUR 1 trillion. The last week’s data highlighted a slowdown in the covered bond and asset-backed-securities (ABS) purchases by the ECB.
The recovery continued in the second half of the week after the ECB’s second round of TLTRO saw weak take-up from the banks. European banks took up just EUR 129.84 billion, which was well below the consensus estimate of EUR 170 billion. The weak take-up triggered speculation of more aggressive action from the ECB in the near future, despite which the EUR/USD continued to rise.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.25 levels, above which gains could be extended to 1.2550 levels. Meanwhile, a break below immediate support located at 1.2450, shall open doors for a re-test of 1.2360 levels.
The EUR/USD pair trades 0.35% higher today at 1.2451 levels, thereby posting a weekly gain of 1.3%. Moreover, the pair would still end up with weekly gains, even if the pair dips into the red for the day from the current level of 1.2451.
The single currency continued to recover from a low of 1.2248 throughout the week on concerns that the ECB would find it difficult to push its balance sheet level to the intended level of EUR 1 trillion. The last week’s data highlighted a slowdown in the covered bond and asset-backed-securities (ABS) purchases by the ECB.
The recovery continued in the second half of the week after the ECB’s second round of TLTRO saw weak take-up from the banks. European banks took up just EUR 129.84 billion, which was well below the consensus estimate of EUR 170 billion. The weak take-up triggered speculation of more aggressive action from the ECB in the near future, despite which the EUR/USD continued to rise.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.25 levels, above which gains could be extended to 1.2550 levels. Meanwhile, a break below immediate support located at 1.2450, shall open doors for a re-test of 1.2360 levels.