3 Sep 2013
EUR/USD eyes 1.3160 as drop sharpens
FXstreet.com (Edinburgh) -The bearish sentiment surrounding the euro is picking up pace in Tuesday, pushing the EUR/USD to 6-week lows in the boundaries of 1.3160.
EUR/USD door open for further pullbacks?
The pair thus intensifies its rejection from the critical resistance band at 1.3400/50, dropping to levels last seen in late July. The euro looks set to trade in the current downbeat mood, as the USD rally gives no sign of surrendering, although bouts of volatility are expected with today’s US ISM Manufacturing. Frank Oland, Analyst at Danske Bank, noted “The move lower in EUR/USD underlines that the cross is no longer trading on risk appetite but rather on whether or not the Fed will taper at this month’s Fed meeting. Today’s ISM is expected to confirm these expectations and further USD support could very well be in store”.
EUR/USD relevant levels
At the moment the pair is losing 0.18% at 1.3166 and a breakdown of 1.3144 (MA200d) would target 1.3115 (low Jul.22) en route to 1.3089 (low Jul.19). On the upside, the initial hurdle lines up at 1.3237 (high Sep.2) ahead of 1.3255 (high Aug.30) and finally 1.3298 (low Aug.22).
EUR/USD door open for further pullbacks?
The pair thus intensifies its rejection from the critical resistance band at 1.3400/50, dropping to levels last seen in late July. The euro looks set to trade in the current downbeat mood, as the USD rally gives no sign of surrendering, although bouts of volatility are expected with today’s US ISM Manufacturing. Frank Oland, Analyst at Danske Bank, noted “The move lower in EUR/USD underlines that the cross is no longer trading on risk appetite but rather on whether or not the Fed will taper at this month’s Fed meeting. Today’s ISM is expected to confirm these expectations and further USD support could very well be in store”.
EUR/USD relevant levels
At the moment the pair is losing 0.18% at 1.3166 and a breakdown of 1.3144 (MA200d) would target 1.3115 (low Jul.22) en route to 1.3089 (low Jul.19). On the upside, the initial hurdle lines up at 1.3237 (high Sep.2) ahead of 1.3255 (high Aug.30) and finally 1.3298 (low Aug.22).