24 Oct 2013
EUR/USD retakes 1.38 front
FXstreet.com (Chicago) - EUR/USD remains around almost 2-year highs perpetuating the bullish trend and retaking the 1.38 front.
Disappointing results
The euro reached the 1.38 barrier on weaker than expected job market data in the US and disappointing manufacturing results for the Euro-zone with Markit PMIs below expectations. In the US increasing initial jobless claims reinforce speculations about the Fed’s decision not to taper until next spring.
EUR/USD Technical Levels
Technically speaking, the pair is offered at 1.3804 and oscillates between the supports aligned at 1.3763 (session lows), 1.3715 (January 20th highs) ahead of 1.3655 (October 3rd highs) with resistances at 1.3824 (session highs), 1.3873 (November 17th 2011 highs) followed by 1.3924 (August 20th 2011 highs).
Valeria Bednarik, FXstreet.com analyst, states “the EUR/USD reached a fresh year high of 1.3824 this Thursday, and despite dollar attempts to fight back, the pair continues well bid, surging after US Manufacturing PMI hit its lowest level in a year. While early disappointing European news did little to tear the pair down, the fact that a fresh high is being reached with this data reflects the strength of the dominant trend, and the little interest for buying the greenback around investors. As for the technical outlook, the hourly chart shows price holding above its 20 SMA while indicators head north above their midlines, although mostly neutral. In the 4 hours chart technical readings maintain a bullish tone, supporting more advances ahead in the pair.”
Disappointing results
The euro reached the 1.38 barrier on weaker than expected job market data in the US and disappointing manufacturing results for the Euro-zone with Markit PMIs below expectations. In the US increasing initial jobless claims reinforce speculations about the Fed’s decision not to taper until next spring.
EUR/USD Technical Levels
Technically speaking, the pair is offered at 1.3804 and oscillates between the supports aligned at 1.3763 (session lows), 1.3715 (January 20th highs) ahead of 1.3655 (October 3rd highs) with resistances at 1.3824 (session highs), 1.3873 (November 17th 2011 highs) followed by 1.3924 (August 20th 2011 highs).
Valeria Bednarik, FXstreet.com analyst, states “the EUR/USD reached a fresh year high of 1.3824 this Thursday, and despite dollar attempts to fight back, the pair continues well bid, surging after US Manufacturing PMI hit its lowest level in a year. While early disappointing European news did little to tear the pair down, the fact that a fresh high is being reached with this data reflects the strength of the dominant trend, and the little interest for buying the greenback around investors. As for the technical outlook, the hourly chart shows price holding above its 20 SMA while indicators head north above their midlines, although mostly neutral. In the 4 hours chart technical readings maintain a bullish tone, supporting more advances ahead in the pair.”