6 Dec 2013
EUR/USD not relenting on upside – which shows just how strong Europe is perceived to be
FXstreet.com (Barcelona) - The EUR/USD is showing the combination of institutional belief in European recovery and strength and in the US’s willingness to postpone tapering of the QE efforts at the first sign of trouble and uncertainty.
EUR/USD traders to monitor major US data on Friday
The data flow that may have an impact on the EUR/USD Friday includes German Factory Orders, but the world’s attention will be on the heavy flow of US data due out later in the session. That US data flow will include the monthly Non-Farm Payrolls data, Personal Income and Spending data, the University of Michigan Consumer Confidence Survey, Consumer Credit data and a speech to be given by the Fed’s Governor Evans (which may contain hints about the Fed’s QE / tapering plans).
Technical outlook for EURUSD
Technicians say the EUR/USD has conquered all hurdles the bears have identified over the last several weeks – the latest being the previously broken uptrend line. Now, the cross has resistance at a possible “correction resistance” level at 1.3682. That level also corresponds with the 76.4% Fibonacci retracement of the October to November decline in the cross. If 1.3682 is eclipsed, look for a test of the October closing high of 1.3803. The important short-term support for the cross comes in at Tuesday’s low of 1.3523.
EUR/USD traders to monitor major US data on Friday
The data flow that may have an impact on the EUR/USD Friday includes German Factory Orders, but the world’s attention will be on the heavy flow of US data due out later in the session. That US data flow will include the monthly Non-Farm Payrolls data, Personal Income and Spending data, the University of Michigan Consumer Confidence Survey, Consumer Credit data and a speech to be given by the Fed’s Governor Evans (which may contain hints about the Fed’s QE / tapering plans).
Technical outlook for EURUSD
Technicians say the EUR/USD has conquered all hurdles the bears have identified over the last several weeks – the latest being the previously broken uptrend line. Now, the cross has resistance at a possible “correction resistance” level at 1.3682. That level also corresponds with the 76.4% Fibonacci retracement of the October to November decline in the cross. If 1.3682 is eclipsed, look for a test of the October closing high of 1.3803. The important short-term support for the cross comes in at Tuesday’s low of 1.3523.