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Forex pairs in this Article » EUR/USD (Edinburgh) - The bid tone remains intact around the shared currency on Tuesday, with the EUR/USD hovering over the upper band of today’s range around 1.3440/45.

EUR/USD focus on EMU data on Wednesday

Better risk-on tone throughout today’s session allowed the pair to leave behind intraday lows near 1.3360 to escalate almost 100 pips to the boundaries of 1.3450. Poor inflation figures from Germany and a steady CPI in Italy ignited a sell-off early morning, although it later proved to be ephemeral. “We are EUR bears, with a year-end target of 1.31; however there are early signs that EUR is entering a short period of rest before it drops another leg lower (next support level is the 200-day MA at 1.3216 followed by the September low of 1.3105”, noted Camilla Sutton, Chief Strategist at Scotiabank. Data-wise, Spanish consumer prices and EMU’s Industrial Production may add some volatility to the pair tomorrow, ahead of the more relevant advanced GDP figures on Thursday.

EUR/USD levels to watch

As of writing the pair is up 0.14% at 1.3433 with the next resistance at 1.3447 (high No.12) ahead of 1.3466 (daily cloud top) and finally 1.3493 (MA10d). On the flip side, a breakdown of 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.).
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