08, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

EUR was growing up all the day long yesterday. The ECB announced the results on interest rates. The Bank left them on the same level - 0.75%.

Euro strengthened against the U.S. dollar after good news of profitable investments in stock of Spain.

The data showed that private employment sector grew faster in February than it was expected. This led to a speculation that the Federal Reserve may consider soon reduction of stimulating programs that can weaken dollar.

Growth of the U.S. and European stock markets have not been able to provide support for the euro, which should "cause significant confusion," those who bet on its growth, said MacNeil Curry Bank of America Merrill Lynch.

The incapability of euro to stay above 1.30 euro dollar supports the idea of the downward trend. As we know euro traditionally grows when other risky assets also strengthen.

The next support for the euro is expected between 1.2876 and 1.2908. A break through below that area could target the pair to November minimum 1.2662.

Immediate support lies at 1.2885/76 - 7 December minimum and 78.6% pullbacks.

The bearish target is the area 1.2679/61 where the pullback level is located 61.8% alongside with a November 2012 minimum.

Falling below 1.2988 (low of March 6) will open the way to 1.2982 (low of March 4) and 1.2966 (low of March 1, 2013).

Intraday resistance is above 1.3036 - 1.3075 in the (maximum 5 March), at 1.3080 (MA10d) and 1.3101 (up to 1 March).