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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - After weeks of trying and with the help of more weak data out of the US, the EUR/USD finally blasted through the short-term ceiling at 1.3205.

More weak data in the US keeps short-term upside momentum going

Even though the EURUSD is sporting a short-term overbought reading, the power of a weaker-than-expected Housing Price Index and a weaker-than-expected Richmond Fed Manufacturing Index in the US was enough to weigh down the greenback and propel the EUR/USD through the 1.3205 resistance level.

Traders will have a flurry of European data to digest Wednesday including PMI readings out of France, Germany and the Euro Zone in general as well as retail sales data out of Italy. Additionally, mortgage data and new home sales will be released in the US later on Wednesday.

Overbought short-term, EUR/USD still has room on chart to 1.3417 eventually

With a nod to the obvious overbought condition on EUR/USD’s chart, technicians like Tim Thielen, CMT and author of The Sea Change Report (www.seachangereport.com), have the EUR/USD eventually testing critical “correction resistance” at 1.3417. Shorter-term resistance for EUR/USD comes in at the Fibonacci projections of 1.3321 and 1.3364 with the key level of 1.3417 just above. Support for EUR/USD now comes in at the previous support of 1.3205 with Tuesday’s low of 1.31627 just below that.
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