Wednesday, November 5, 2014

$EUR/USD consolidates below 1.2500

$EUR/USD stretched to a fresh daily low following below forecast ISM non-manufacturing PMI, but bears lacked determination to push the pair much lower, and quickly returned to pre-data levels.
Investors seem unwilling to take big positions ahead of the European Central Bank decision Thursday and the US nonfarm payrolls report Friday. While the ECB is expected to remain on hold, US is expected to report a 231K job gain.
$EUR/USD is currently trading at the 1.2475 zone, 0.55% below its opening price. The pair was rejected by the 1.25750 zone yesterday and resumed the downside amid broad USD strength and disappointing Eurozone data, having made a low of 1.2456 so far today.
$EUR/USD levels to watch
As for technical levels, EUR/USD could find immediate supports at 1.2456 (Nov 5 low), 1.2439 (2014 low Nov 3) and 1.2400 (psychological level). On the other hand, resistances are seen at 1.2576 (Nov 4 high), 1.2600 (psychological level/10-day SMA) and 1.2616 (Oct 31 high).