Back
14 Aug 2013
EUR/USD clings to positive
FXstreet.com (Edinburgh) - After hitting session lows in the vicinity of 1.3240, the EUR/USD gathered steam and is now back to the positive ground, albeit marginally.
EUR/USD bounced off 1.3240
Buyers turned up around 1.3240, reverting the steep decline during the European morning. Despite auspicious data from French and German Q2 GDP figures plus the positive news that the bloc emerged from recession were not enough to spark the least rebound in the pair. “the price action we’ve witnessed in the EUR in the run-up to today’s data – particularly the strength during the month of July – appears to have taken the focus off the underlying structural drags on Euro Area growth which have still not dissipated entirely. From this perspective, today’s anticlimactic twist in rates and FX in response to the data is a healthy adjustment, and one that is more grounded in reality than emotion, sentiment or positioning”, assessed Stephen Gallo, Strategist at BMO.
EUR/USD key levels
At the moment the pair is up 0.01% at 1.3265 with the initial resistance at 1.3295 (MA10d) followed by 1.3317 (high Aug.13) and then 1.3345 (high Aug.12). On the downside, a breach of 1.3233 (low Aug.5) would aim for 1.3200 (psychological level) and finally 1.3188 (low Aug.2).
EUR/USD bounced off 1.3240
Buyers turned up around 1.3240, reverting the steep decline during the European morning. Despite auspicious data from French and German Q2 GDP figures plus the positive news that the bloc emerged from recession were not enough to spark the least rebound in the pair. “the price action we’ve witnessed in the EUR in the run-up to today’s data – particularly the strength during the month of July – appears to have taken the focus off the underlying structural drags on Euro Area growth which have still not dissipated entirely. From this perspective, today’s anticlimactic twist in rates and FX in response to the data is a healthy adjustment, and one that is more grounded in reality than emotion, sentiment or positioning”, assessed Stephen Gallo, Strategist at BMO.
EUR/USD key levels
At the moment the pair is up 0.01% at 1.3265 with the initial resistance at 1.3295 (MA10d) followed by 1.3317 (high Aug.13) and then 1.3345 (high Aug.12). On the downside, a breach of 1.3233 (low Aug.5) would aim for 1.3200 (psychological level) and finally 1.3188 (low Aug.2).