(MENAFN- DailyFX) DailyFX.com - r>
Talking Points:
- EURUSD can't climb back into channel from Nov 7 low.
- EURGBP in lower half of triangle sub-0.7900.
- See the 'high' importance events on the DailyFX Economic Calendar.
Fundamental pressures are preventing key technical levels from being achieved by Euro bulls. ECB Vice President Vitor Constancio's latest remarks indicating that a sovereign QE program could be initiated in Q1'15 add another prominent voter to President Draghi's dovish camp whose marching beat is 'the ECB balance sheet will expand to early-2012.'
Considering that the ECB's balance sheet is roughly €1 trillion short today of its early-2012 levels market participants (those that have stuck around as illiquid holiday trading conditions set in) have determined that this is a strong enough signal to keep a Euro short covering rally at bay.
Whereas EURAUD is running higher on the back of a weaker Australian Dollar the other major EUR-based pairs - EURGBP EURJPY and EURUSD - aren't offering as promising of a technical picture. See the above video for technical considerations..
Read more: USDOLLAR Yet to Reach 11370 Target; AUD/USD Breaches Triangle Support
--- Written by Christopher Vecchio Currency Strategist
To contact Christopher Vecchio e-mail cvecchio@dailyfx.com
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list please fill out this form
original source
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.