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19 Aug 2013
EUR/USD extends the recovery, eyes on 1.3380
FXstreet.com (Edinburgh) -After bottoming out around 1.3315, the EUR/USD initiated a violent correction higher to test session peaks in the boundaries of 1.3380.
EUR/USD keeps the range
It s been quite a choppy session for the pair so far, despite empty dockets in both the euro area and the US economy. The biggest event for the EUR will be the FOMC minutes on Wednesday, although consensus remains split regarding the USD potential direction. “Given the ECB’s historical aversion to pre-committing, however, the question is whether markets will have faith in the ECB’s forward guidance – especially if European macro data continue to improve as expected… This leaves the risk of short-term rate spreads widening further to the euro’s advantage and of EUR/USD to move towards the high 1.30s before the ECB intervenes either verbally by trying to talk rates down, or by a refi rate cut or a new liquidity facility”, assessed Kasper Kirkegaard, Senior Analyst at Danske bank.
EUR/USD levels to watch
As of writing the pair is up 0.18% at 1.3359 and a breakout of 1.3401 (high Aug.8) would target 1.3417 (high Jun.19) en route to 1.3456 (high Feb.14). On the downside, support levels align at 1.3261 (low Aug.19) followed by 1.3222 (weekly cloud top) and finally 1.3212 MA30d).
EUR/USD keeps the range
It s been quite a choppy session for the pair so far, despite empty dockets in both the euro area and the US economy. The biggest event for the EUR will be the FOMC minutes on Wednesday, although consensus remains split regarding the USD potential direction. “Given the ECB’s historical aversion to pre-committing, however, the question is whether markets will have faith in the ECB’s forward guidance – especially if European macro data continue to improve as expected… This leaves the risk of short-term rate spreads widening further to the euro’s advantage and of EUR/USD to move towards the high 1.30s before the ECB intervenes either verbally by trying to talk rates down, or by a refi rate cut or a new liquidity facility”, assessed Kasper Kirkegaard, Senior Analyst at Danske bank.
EUR/USD levels to watch
As of writing the pair is up 0.18% at 1.3359 and a breakout of 1.3401 (high Aug.8) would target 1.3417 (high Jun.19) en route to 1.3456 (high Feb.14). On the downside, support levels align at 1.3261 (low Aug.19) followed by 1.3222 (weekly cloud top) and finally 1.3212 MA30d).