EUR/USD bounces off 1.3370

FXstreet.com (Edinburgh) -After bottoming out around 1.3370, the EUR/USD has now regained the 1.3380/85 area although remains submerged into the red territory on Tuesday.

EUR/USD consolidates below 1.3400

The pair is extending its correction lower after several unsuccessful attempts to sustain a break above 1.3400/20, although the consolidation pattern seems to be the prevailing scenario during this week, at least until EMU’s GDP figures on Thursday (0.3% QoQ expected). In the data front, Italian consumer prices came in above estimates during October although they remained overall unchanged from September. In the opinion of Stoyan Mihaylov, Strategist at DeltaStock.com, “Still in the consolidation pattern above 1.3295 low and with the reliable resistance at 1.3450 the outlook here remains negative, for a sell-off towards 1.3100 major hurdle. The intraday bias is slightly positive, for one more test of 1.3430-50 resistance area”.

EUR/USD levels to watch

At the moment the pair is losing 0.18% at 1.3388 and a break below 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.). On the upside, the immediate resistance aligns at 1.3414 (high Nov.12) ahead of 1.3417 (high Nov.11) and finally 1.3438 (high Nov.8).

Flash: AUD/USD expected to remain heavy - OCBC Bank

Emmanuel Ng of OCBC Bank is expecting AUD/USD to remain heavy due to contrasting Central Bank tones on both sides of the pair.
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