EUR/USD ahead of the Trichet’s press conference.
February 4, 2010 - 7:35 am by Juan P. Bejarano · Leave a Comment
Daily Fundamentals:
The Euro edged lower in Asia and Europe as risk aversion overtakes the market. Concerns over Greece debt levels remain, even as the EU gave a nod to Greece’s plan.
Portugal, Spain, and Hungary are now on the limelight on concern governments will struggle to fund their budget deficits.
Reports published by the Deutsche Bundesbank showed German factory orders fall by 2.3%, below analysts estimates, and lower than the upwardly revised 2.7% prior.
EUR/USD is steady near the 1.3800 level as traders await the ECB rate decision and Trichet’s press conference.
The ECB will likely keep interest rates at a record low of 1% as it is widely expected. Investors will then turn their attention to Trichet’s press conference 45 minutes after the decision.
— You can view Trichet’s press conference live HERE! —
At its press conference, investors will focus on comments regarding Greece budget plan and remarks on other member states with budget deficit strains. In addition, views about their economic and inflation outlook will be important.
Alongside Trichet’s press conference, markets will see U.S. economic data including: unemployment claims, preliminary non-farm productivity and unit labor costs.
Trend:
Weekly : Sideways
Daily: Bearish
Hourly: Bearish
Support & Resistance:
From current levels, 1.3845, the pair finds initial resistance at 1.3854, followed by 1.3902, 1.3928 and 1.4070.
Key support to watch is the 1.3826 where a break of such would open targets to the 1.3800 (50.0% Fib.) level, followed by 1.3750 and 1.3720.
Strategy:
Stand aside for now. Looking to sell on rallies. Will likely issue a trade idea post press conference.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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