Back
14 Aug 2013
EUR/USD keeps falling, testing 1.3240
FXstreet.com (Edinburgh) -The shared currency is now intensifying its way down, dragging the EUR/USD to fresh session lows around 1.3240.
EUR/USD ignored recent data
The pair has ignored the recent positive string of data from the euro area, like yesterday’s improvement in German and EMU ZEW Survey and today’s French, German and EMU GDP figures, resulting in further weakness. The failure to convincingly follow through the 1.3400 handle adds to the increasing selling pressure. In the opinion of Greg Gibbs, FX Trading Strategist at RBS assessed, “The fall in the EUR/USD overnight makes less sense in light of the bigger rise in Euro short end yields, although the EUR is trading closer to the high side of its range since Feb, and it may not be slavishly following yield spreads. Nevertheless, the wider EUR 2yr swap advantage suggests caution selling EUR/USD”.
EUR/USD levels to watch
At the moment the pair is down 0.14% at 1.3245 and a breakdown of 1.3233 (low Aug.5) would aim for 1.3200 (psychological level) and finally 1.3188 (low Aug.2). On the other hand, the initial resistance aligns at 1.3295 (MA10d) followed by 1.3317 (high Aug.13) and then 1.3345 (high Aug.12).
EUR/USD ignored recent data
The pair has ignored the recent positive string of data from the euro area, like yesterday’s improvement in German and EMU ZEW Survey and today’s French, German and EMU GDP figures, resulting in further weakness. The failure to convincingly follow through the 1.3400 handle adds to the increasing selling pressure. In the opinion of Greg Gibbs, FX Trading Strategist at RBS assessed, “The fall in the EUR/USD overnight makes less sense in light of the bigger rise in Euro short end yields, although the EUR is trading closer to the high side of its range since Feb, and it may not be slavishly following yield spreads. Nevertheless, the wider EUR 2yr swap advantage suggests caution selling EUR/USD”.
EUR/USD levels to watch
At the moment the pair is down 0.14% at 1.3245 and a breakdown of 1.3233 (low Aug.5) would aim for 1.3200 (psychological level) and finally 1.3188 (low Aug.2). On the other hand, the initial resistance aligns at 1.3295 (MA10d) followed by 1.3317 (high Aug.13) and then 1.3345 (high Aug.12).