Euro / US Dollar (EUR/USD) : Attention is now on Eurozone currency
 |
02/11/2013 | 08:31am
Opinion : Check out the trading range breakout 1.3248 USD/ 1.3376 USD
|
|
After a high of 14 months beyond USD 1.37, Euro fell in the face of political uncertainty in Italy and Spain and concerns of European leaders.
While the transalpine peninsula observed with utmost attention progress of Silvio Berlusconi in the polls for elections scheduled for February 23 and 24, Spain is at the heart of a corruption scandal involving the Prime Minister Mariano Rajoy, what call into question appeasement in bond markets.
On the other hand, the recent rise of the Euro is not without consequences on the economy of the Old Continent and statements against the force of the single currency multiply. The French president François Hollande has called for an exchange rate policy while Angela Merkel is worried about monetary policy being conducted by Japan.
In the meantime, Mario Draghi reiterated that the level of the euro was not an objective of monetary policy; however, he discussed the impact of the Euro on the level of inflation whereas the ECB is the guarantor of price stability. He implicitly binds the evolution of the euro at the next decisions of the Board of Governors.
Graphically, the single currency has just ended the week below our USD 1.3376 short term support. Breaking this level in weekly closing price, it opens the way for a continuation of the movement towards 1.3248 where the Euro could find sufficient momentum to revive due to medium-term support and its trend line. We place a limit order to buy at 1.3250.
 |
Mathieu Burbau
Copyright (c) 2013 4-Traders.com |
Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.
