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6 May 2013
Forex: EUR/USD finds support at 1.3050
FXstreet.com (Córdoba) - The setback of the euro against the dollar seen on the back of Draghi's comments seems to have found an interim support at the 1.3050 area.
ECB President explained that the rate cut had been carried out due to the economic slowdown which now affects also the core Eurozone countries. He added that the central bank was ready to act again, should the need arise.
EUR/USD fell over 50 pips in the aftermath of the speech and hit a low of 1.3052 before buyers reemerged. The cross managed to bounce slightly and it is currently trading at the 1.3065 zone, still down 0.4% on the day.
If the euro breaks decisively below 1.3050, next supports could be found at 1.3033 (low May 3) and 1.3015 (low Apr 22). On the other hand, resistances are now seen at 1.3140 (daily high) and 1.3157/60 (100-day SMA/high May 6).
ECB President explained that the rate cut had been carried out due to the economic slowdown which now affects also the core Eurozone countries. He added that the central bank was ready to act again, should the need arise.
EUR/USD fell over 50 pips in the aftermath of the speech and hit a low of 1.3052 before buyers reemerged. The cross managed to bounce slightly and it is currently trading at the 1.3065 zone, still down 0.4% on the day.
If the euro breaks decisively below 1.3050, next supports could be found at 1.3033 (low May 3) and 1.3015 (low Apr 22). On the other hand, resistances are now seen at 1.3140 (daily high) and 1.3157/60 (100-day SMA/high May 6).