The euro managed to advance against the dollar on Wednesday reaching $1.2302, after positive data for European banks liquidity.
On yesterday’s auction the region's banks had asked the ECB for 131.9 billion euros in 3- month loans, which was far below the analyst expectations for at least 250 billion.
This news were well received by market participations and provided support for the European stocks and for the battered euro.
The euro advanced to ¥109.11 against the yen, while versus the sterling it had reached £0.8225. On the other hand the European currency remained unchanged against the Swiss franc at 1.3138, but this morning it extended its losses to 1.3075.
The U.S. dollar also continued to decline versus the franc reaching 1.0709 early this morning. Against the yen the greenback fell to ¥88.05, while versus the sterling it managed to advance to $1.4934.
TECHNICAL OVERVIEW
EUR/USD
The short term picture is neutral as the euro consolidated around 1.2300 levels. So far the rise is limited by the resistance at 1.2470 and if broken successfully next targets will be the resistances at 1.2670 and 1.3080. On the downside, support is seen at 1.2240 followed by 1.2160 and 1.2000.
EUR/USD (chart, table)
USD/JPY
The short term picture is negative as the pair broke below the 89.90 level. So far the upward movement is limited by the resistance at 91.00, and if broken successfully next targets will be the resistances at 92.30 and 92.80. On the downside, below 89.20, support is seen at 88.05 and 87.30.
The sterling extended its correction as expected and now we could expect support around 1.4900 between 50-day SMA and the trend line which connects the last 8 months tops. Break below 1.4800 will put the target on 1.4720, followed by 1.4540 and 1.4450. On the opposite direction resistances remain at 1.5180 and 1.5310.
