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6 Aug 2015
EUR/USD: Bulls struggle to extend gains above 1.09
FXStreet (Mumbai) - The bid tone on the EUR has ensured the EUR/USD pair stays above 1.09 handle, however, the bulls lack intent to push it higher ahead of the critical BOE event that may trigger sharp moves in the EUR/GBP pair.
At the mercy of EUR/GBP cross
The critical BOE events – rate decision, minutes, quarterly inflation report, and Carney’s press conference could create sharp moves in the EUR/GBP pair. The markets are widely expecting the BOE to announce a major change in the policy tone – tilting towards hawkish tone. This could lead to break in the EUR/GBP cross as the yield differential could come into play.
On the other hand, there is also a risk of the BOE staying neutral and sending EUR/GBP cross higher. In both cases, the sharp moves in the EUR/GBP cross could cushion or pressurize the EUR/USD pair.
EUR/USD Technical Levels
The spot currently trades around 1.0905. The immediate support is located at 1.09 handle, under which the prices could drop to 1.0848 (Wed’s low). On the flip side, resistance is located at 1.0964 (50% of Mar-May rally) and 1.10 handle.
At the mercy of EUR/GBP cross
The critical BOE events – rate decision, minutes, quarterly inflation report, and Carney’s press conference could create sharp moves in the EUR/GBP pair. The markets are widely expecting the BOE to announce a major change in the policy tone – tilting towards hawkish tone. This could lead to break in the EUR/GBP cross as the yield differential could come into play.
On the other hand, there is also a risk of the BOE staying neutral and sending EUR/GBP cross higher. In both cases, the sharp moves in the EUR/GBP cross could cushion or pressurize the EUR/USD pair.
EUR/USD Technical Levels
The spot currently trades around 1.0905. The immediate support is located at 1.09 handle, under which the prices could drop to 1.0848 (Wed’s low). On the flip side, resistance is located at 1.0964 (50% of Mar-May rally) and 1.10 handle.