EUR/USD was again driven by fundamentals. This time, the major move on this pair was caused by Luxembourg’s Prime Minister Jean-Claude Juncker. Last week, EUR/USD’s appreciation was caused by Mario Draghi and on Tuesday, a big move in the opposite direction was caused by Juncker, who said that the EUR exchange rate is too high. By saying that, he caused a major, almost 80 pips, downswing.
Actually, bulls had some problems before Juncker. They did not manage to hold the 1.3340 level and that was the first warning of changing sentiment to neutral. Luxembourg’s Prime Minister forced EUR/USD to test a very strong support at 1.3280 and it was holding quite well during the Asian session. As we were getting closer to the start in Europe, support became weaker and weaker, with candles consuming this support level more and more.
This can be a sign that this support is no longer in use and we can expect a move down to another one on 1.3250. Breaking that one will give a definite sell signal and will be a sign that the bearish correction can be much bigger than expected.
EUR/USD" title="EUR/USD" width="613" height="329">
Defending 1.3250 is the minimal target for buyers if they want to keep control over the current correction. On the other hand, sellers will use every possible resistance to drive prices lower, as for example, is indicated with this blue line, helping bears in the early morning.
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EUR/USD Trading Driven By Fundamentals Again
Published 01/16/2013, 06:43 AM
Updated 01/31/2022, 02:45 AM
EUR/USD Trading Driven By Fundamentals Again
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