EUR/USD To Consolidate With Bearish Bias
Asia-Pacific exchange net America 2010-01-22 08:06:42
EUR/USD to consolidate with bearish bias after hitting 6-month low of 1.4025 yesterday. Pair undermined by continued concerns about Greece''''s fiscal problems, IMF criticism of Portugal''''s budget plans, unwinding of long-EUR carry trades on higher risk aversion, weaker euro-zone January composite PMI (fell to 53.6 from December''''s 54.2, vs 53.7 forecast). But EUR/USD losses tempered by weaker USD sentiment, expectations of SNB intervention on EUR/CHF, positions adjustment before weekend. Data focus: 1000 GMT euro-zone November new industrial orders, 1000 GMT euro-zone 3Q balance of payments (2nd release). EUR/USD daily chart negative-biased as MACD & stochastics bearish, although latter at oversold, suggesting sideways or lower EUR/USD trading near-term. Support at 1.4025 (yesterday''''s low), then at 1.4005 (July 30 reaction low); breach would expose downside to 1.3830 (July 8 reaction low), then 1.3800 (50% Fibonacci retracement of advance from March 4 low of 1.2455 to Nov. 25 high of 1.5144). Resistance at 1.4143 (yesterday''''s high); breach would temper near-term negative outlook, exposing upside to 1.4216 (previous base set Dec. 22), then 1.4296 (Wednesday''''s high, just below 200-day moving average), 1.4332 (previous base set Monday) and 1.4413 (Tuesday''''s high).