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11 Dec 2014
EUR/USD treads water ahead of 2nd TLTRO
FXStreet (Mumbai) - The Euro trades cautiously against the US dollar in the European morning, on expectations of lower take-up in second tender of new cheap loans from the European Central Bank’s (ECB).
The EUR/USD pair trades modestly flat at 1.2440 levels, after having clocking a high of 1.2495 levels in the early Asian hours. The Euro erased gains and remains pressured as markets expect banks to borrow about 130 billion euros, just over half the amount on offer by ECB in 2nd tranche of TLTRO later in the session, which may cause the ECB to consider a full blown quantitative easing (QE).
Moreover, investors await Germany inflation data, with the headline figure forecast to stay muted in November.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2507 (Dec 1 High) levels, above which gains could be extended to 1.2532 (Nov 26 High) levels. On the flip side, support is seen at 1.24 (50-day SMA) levels, below which it could extend losses to 1.2374 (200-day SMA) levels.
The EUR/USD pair trades modestly flat at 1.2440 levels, after having clocking a high of 1.2495 levels in the early Asian hours. The Euro erased gains and remains pressured as markets expect banks to borrow about 130 billion euros, just over half the amount on offer by ECB in 2nd tranche of TLTRO later in the session, which may cause the ECB to consider a full blown quantitative easing (QE).
Moreover, investors await Germany inflation data, with the headline figure forecast to stay muted in November.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2507 (Dec 1 High) levels, above which gains could be extended to 1.2532 (Nov 26 High) levels. On the flip side, support is seen at 1.24 (50-day SMA) levels, below which it could extend losses to 1.2374 (200-day SMA) levels.