Thursday, January 15, 2015

EUR/USD continues to lose ground on Thursday

EUR/USD continues to lose ground on Thursday, as the pair trades at the 1.17 line in the European session. The euro slipped as low as 1.1580, its lowest level since November 2003. On the release front, Eurozone Trade Balance improved to EUR 20.0B, but this was short of expectations. Later in the day, the German Bundesbank President Jens Weidmann will deliver remarks in Berlin. It’s a busy day in the US, highlighted by Unemployment Claims. We’ll also get a look at PPI and the Philly Fed Manufacturing Index.
EUR/USD was flat in the Asian session. The pair has posted losses in the European session, breaking below resistance at 1.1734 and testing support at 1.1634.
1.1734 has switched to a resistance role as the pair has dropped to lower levels.
1.1634 is an immediate support role. EUR/USD is pointing to gains in short positions on Thursday, reversing the direction seen a day earlier. This is consistent with the pair’s movement, as the euro continues to post more losses. The ratio is showing a split between long and short open positions, indicative of a lack of trader bias towards where the pair is headed next.