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28 Nov 2013
EUR/USD treading water around 1.3600
FXstreet.com (Edinburgh) - The EUR/USD now looks to stabilize around the 1.3600 handle on Thursday amidst thin trade and scarce volatility due to the US holiday.
EUR/USD extends the recovery
The pair already recovered the ground lost post-ECB rate cut on November 7th, advancing more than 3-big figures since lows sub-13300 so far, ahead of tomorrow’s key EMU’s advanced inflation figures. Market consensus expects consumer prices to expand 0.8% on a yearly basis and Core prices would follow suit, 0.8% year-on-year. Analysts at TD Securities observed, “ In a broad sense, we remain fundamentally bearish on the EUR (vs. the USD in particular), but we are mindful of the fairly strong seasonal pattern of the past ten years that has tended toward EUR/USD strength through December. With that in mind, we continue to look for topping signals in the coming weeks”.
EUR/USD levels to consider
At the moment the pair is advancing 0.22% at 1.3604 with the next up barrier at 1.3628 (61.8% of 1.3822-1.3295) ahead of 1.3647 (daily cloud top) and then 1.3696 (low Oct.30). On the downside, a dip beyond 1.3564 (low Nov.28) would expose 1.3558 (low Nov.27) and finally 1.3529 (MA21d).
EUR/USD extends the recovery
The pair already recovered the ground lost post-ECB rate cut on November 7th, advancing more than 3-big figures since lows sub-13300 so far, ahead of tomorrow’s key EMU’s advanced inflation figures. Market consensus expects consumer prices to expand 0.8% on a yearly basis and Core prices would follow suit, 0.8% year-on-year. Analysts at TD Securities observed, “ In a broad sense, we remain fundamentally bearish on the EUR (vs. the USD in particular), but we are mindful of the fairly strong seasonal pattern of the past ten years that has tended toward EUR/USD strength through December. With that in mind, we continue to look for topping signals in the coming weeks”.
EUR/USD levels to consider
At the moment the pair is advancing 0.22% at 1.3604 with the next up barrier at 1.3628 (61.8% of 1.3822-1.3295) ahead of 1.3647 (daily cloud top) and then 1.3696 (low Oct.30). On the downside, a dip beyond 1.3564 (low Nov.28) would expose 1.3558 (low Nov.27) and finally 1.3529 (MA21d).