TRADING TIPS :
- Forex-Dollar slips lower vs. yen, euro steady near lows .
- Forex- Euro steady near 2-year lows against sterling .
- Forex-Euro steady vs. dollar after weak Ifo, Draghi comments .
EUR/USD was trading at 1.2850, hovering just above Monday’s 14-month trough of 1.2815.The pair was likely to find support at 1.2815 and resistance at around the 1.29 levelThe euro was little changed after a report showed t That Germany’s Ifo business confidence index deteriorated for the fifth successive month in September.The Ifo economic institute’s business climate index fell to 104.7 from 106.3 in August.The euro was steady against the dollar on Wednesday, holding above 14 month lows after data showed that business confidence in Germany continued to deteriorate this month and after the European Central Bank reiterated its commitment to accommodative monetary policy.Monetary policy will remain accommodating for a long time and I can tell you t that the Governing Council is unanimous in committing itself to using the tools at its disposal to bring inflation back to just under 2%
GBP/USDhit 1.6414 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6394, inching up 0.03%. Cable was likely to find support at 1.6287, the low of September 22 and resistance at 1.6526, the high of September 19.The pound was almost unchanged against the U.S. dollar in quiet trade on Wednesday, as demand for sterling remained supported by the outcome of last week’s vote on Scottish independence, while Tuesday’s U.S. manufacturing data continued to boost the greenback. European Central Bank President Mario Draghi said the bank will keep its monetary policy “accommodative for as long as needed, and will use every tool at its disposal to fight deflation.The Ifo economic institute’s business climate index fell to 104.7 from 106.3 in August. It was the lowest level since April 2013 and much weaker than economists’ forecasts for 105.7.
1. Buy EUR/USD Above 1.2846-TG:1.2866/1.2896 SL 1.2816
2. Sell EUR/USD Below 1.2824-TG:1.2804/1.2774 SL 1.2854