20 Aug 2013
EUR/USD testing lows below 1.3330
FXstreet.com (Edinburgh) -The EUR/USD is now easing ground from the mid 1.3300s to the area of 1.3330/25 after the opening bell in London, testing at the same time session lows.
EUR/USD still capped by 1.3400/20
The area of 1.3400/20 still represents a tough barrier for euro-bulls after several failed attempts to follow through it. On the cards, tomorrow’s FOMC minutes might give some oxygen to the pair as consensus points to a dovish tone from them. According to Mansoor Mohi-uddin, Director of FX Strategy at UBS, “We thus see limited upside for the euro from current levels unless the Fed chooses not to taper its asset purchases this year. Instead, we expect the single currency will fall back towards the bottom of its current range at 1.28 against the greenback as summer trading ends, the ECB maintains a dovish stance and the Fed reduces its bond buying. That divergence in time is likely to push the euro back down to our longer term target of 1.20 against the greenback”.
EUR/USD levels to consider
At the moment the pair is losing 0.06% at 1.3325 with the immediate support at 1.3314 (low Aug.19) followed by 1.3312 (low Aug.6) and finally 1.3300 (psychological level). On the flip side, a break above 1.3375 (high Aug.19) would open the door to 1.3401 (high Aug.8) and then 1.3417 (high Jun.19).
EUR/USD still capped by 1.3400/20
The area of 1.3400/20 still represents a tough barrier for euro-bulls after several failed attempts to follow through it. On the cards, tomorrow’s FOMC minutes might give some oxygen to the pair as consensus points to a dovish tone from them. According to Mansoor Mohi-uddin, Director of FX Strategy at UBS, “We thus see limited upside for the euro from current levels unless the Fed chooses not to taper its asset purchases this year. Instead, we expect the single currency will fall back towards the bottom of its current range at 1.28 against the greenback as summer trading ends, the ECB maintains a dovish stance and the Fed reduces its bond buying. That divergence in time is likely to push the euro back down to our longer term target of 1.20 against the greenback”.
EUR/USD levels to consider
At the moment the pair is losing 0.06% at 1.3325 with the immediate support at 1.3314 (low Aug.19) followed by 1.3312 (low Aug.6) and finally 1.3300 (psychological level). On the flip side, a break above 1.3375 (high Aug.19) would open the door to 1.3401 (high Aug.8) and then 1.3417 (high Jun.19).