Filed Under:
Forex pairs in this Article » EUR/USD (Edinburgh) - The EUR/USD is now struggling to follow through the area around 1.3530 on Monday despite the prevailing risk-on context.

EUR/USD consolidating above 1.3500

The pair is extending the recovery from session lows near 1.3440, paring at the same time last week’s strong losses post FOMC gathering. The EUR found some respite today following the profit-taking tone around the USD and decent data from the final manufacturing PMI prints during October in the euro area, shrugging-off last week’s disappointing unemployment rate and consumer prices. In the opinion of analysts at TD Securities, “From the perspective of the weekly chart, there is no equivocating; a major top is in for EUR/USD and the extent of the sell off… suggests a deep correction of the recent rally lies ahead. That means more pressure on the 1.34s ahead and a drop back to the 1.31/1.32 area in the next few weeks”.

EUR/USD levels to watch

The pair is now up 0.18% at 1.3512 and a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30). On the downside, the initial support lies at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833).
comments powered by Disqus