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Forex pairs in this Article » EUR/USD (London) - EUR/USD is working in a tight range within the 1.3340’s.

EUR/USD drifted lower in NA and was offered in Asia to 1.3330 zone. European markets have seen the German GDP QoQ for Q2 that arrived at 0.7% and in line with expectations. The pair has moved out of the 1.3335 lows territory and is lining up for a move in on 1.3350’s to meet over night resistance. A drift higher to 1.3380 is needed to make any significant impact on an otherwise bearish trend. There is little left of the calendar for the pair today other than for the US data this afternoon in New Home Sales. Some analysts expect new home sales to fall by -2.8% M/M in July (mkt -2.0%), giving back some of the big 8.3% increase from the month before.

EUR/USD top formed

Senior Analyst, Axel Rudolph at Commerzbank said the negative divergence seen between the daily RSI and the EUR/USD's current August high at 1.3453 points to a top being formed. “Confirmation of this would be a drop through the steep two month support line at 1.3307 and a fall through Tuesday’s 1.3323 low. Only a drop through the next lower 1.3208/1.3188 support area will mean that a significant top has indeed been made.” He suggested that should an unexpected rise above the 1.3427 Wednesday high be seen, though, his view will probably be incorrect. “In this case, Tuesday’s 1.3453 peak should be overcome with the 1.3500/20 region then being reached. It consists of the minor psychological level and 13th February high. This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair is already topping out”.
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