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16 Apr 2013
Forex: EUR/USD retreats from highs
FXstreet.com (Barcelona) - After visiting the area around 1.3150/55 (100-day moving average), the single currency has now eased some ground to the current 1.3125/30 region.
Curious day for the euro, as it’s started a strong bull run just after the poor data from the German ZEW Survey, usually a potent catalyst for the EUR.
In the opinion of Christopher Vecchio, Currency Analyst at DailyFX, this could be the reason: “The EU parliament voted in favour of implementing Basel III law, which would force banks to adopt higher tier 1 capital ratios (and thus bolster their balance sheets). If banks are stronger, sovereigns are less exposed to the crisis, and in time, the self-fulfilling feedback loops ends”.
At the moment, the cross is up 0.75% at 1.3134 with the next resistance at 1.3152 (MA100d) ahead of 1.3163 (high Feb.28) and finally 1.3229 (50% of Feb. – Apr. slide).
On the downside, a violation of 1.3031 (MA10d) would aim for 1.3006 (low Apr.9) and then 1.2963 (low Apr.8).
Curious day for the euro, as it’s started a strong bull run just after the poor data from the German ZEW Survey, usually a potent catalyst for the EUR.
In the opinion of Christopher Vecchio, Currency Analyst at DailyFX, this could be the reason: “The EU parliament voted in favour of implementing Basel III law, which would force banks to adopt higher tier 1 capital ratios (and thus bolster their balance sheets). If banks are stronger, sovereigns are less exposed to the crisis, and in time, the self-fulfilling feedback loops ends”.
At the moment, the cross is up 0.75% at 1.3134 with the next resistance at 1.3152 (MA100d) ahead of 1.3163 (high Feb.28) and finally 1.3229 (50% of Feb. – Apr. slide).
On the downside, a violation of 1.3031 (MA10d) would aim for 1.3006 (low Apr.9) and then 1.2963 (low Apr.8).