27 Sep 2013
EUR/USD under pressure on Italian political uncertainty
FXstreet.com (Athens) – The EUR/USD started the Asian opening last trading session day of the week on the down level due mainly to the Italian political jitters and the re-emerging political drama of the US debt ceiling.
EUR/USD on consolidation mode amidst better US jobs data, Italian “jitters”
While the EUR/USD kicked off the Asian opening trading session near 1.3490, it soon got under renewed pressure on the reemergence of the unstable Italian political backdrop. What’s more in any case, the sidelined trend of the pair alongside with a soft downward movement can be well attributed to a less or more extent to the solid US job claims data. As it is widely expected, the good yesterday’s release on US jobs data amidst an FOMC data-dependent era, it led to a greenback strengthening across the board (to a less or more extent). Last but not least, investors should always bear in mind that month-end flows will have a crucial impact on the pair, while the market is running out of steam and liquidity ahead of a critical weekend. In the weekend ahead, the Washington D.C. will try to make the best effort in order to avoid the closure of government in two weeks time.
Technical Analysis and Strategic Bias on EUR/USD
We are ahead of a tough data amidst the release of major data (US NFP, Euro zone confidence indices, German CPI) alongside with political battles in Washigton D.C. regarding the debt-ceiling. What’s more, the Italian political backdrop seems to be in great instability. Karen Jones, Head Technical Analyst at Commerzbank suggests that “The TD perfected set up is suggesting that the upside is limited from here, but allows for potential move to 1.3585. We have something similar on the 240 minute chart which allows for a maximum of 1.3730. If holding longs, keep stops tight. Initial support remains the 1.3453 August high. Only a close below here would alleviate immediate upside pressure and signal a slide back to the 1.3278/1.3168 55 and 200 day ma.”
EUR/USD on consolidation mode amidst better US jobs data, Italian “jitters”
While the EUR/USD kicked off the Asian opening trading session near 1.3490, it soon got under renewed pressure on the reemergence of the unstable Italian political backdrop. What’s more in any case, the sidelined trend of the pair alongside with a soft downward movement can be well attributed to a less or more extent to the solid US job claims data. As it is widely expected, the good yesterday’s release on US jobs data amidst an FOMC data-dependent era, it led to a greenback strengthening across the board (to a less or more extent). Last but not least, investors should always bear in mind that month-end flows will have a crucial impact on the pair, while the market is running out of steam and liquidity ahead of a critical weekend. In the weekend ahead, the Washington D.C. will try to make the best effort in order to avoid the closure of government in two weeks time.
Technical Analysis and Strategic Bias on EUR/USD
We are ahead of a tough data amidst the release of major data (US NFP, Euro zone confidence indices, German CPI) alongside with political battles in Washigton D.C. regarding the debt-ceiling. What’s more, the Italian political backdrop seems to be in great instability. Karen Jones, Head Technical Analyst at Commerzbank suggests that “The TD perfected set up is suggesting that the upside is limited from here, but allows for potential move to 1.3585. We have something similar on the 240 minute chart which allows for a maximum of 1.3730. If holding longs, keep stops tight. Initial support remains the 1.3453 August high. Only a close below here would alleviate immediate upside pressure and signal a slide back to the 1.3278/1.3168 55 and 200 day ma.”