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Forex pairs in this Article » EUR/USD (Edinburgh) -The buying interest remains intact around the shared currency at the end of the trading session in Wall St, with the EUR/USD hovering over 1.3780/90.

EUR/USD well positioned ahead of PMIs on Thursday

There is no docket in the euro area on Wednesday, with the most relevant releases coming from the advanced gauges of manufacturing and services PMI due on Thursday and the German IFO on Friday. Market consensus expects the recovery in the euro area to persist, giving further support to the single currency and thus paving the way for a visit to levels beyond 1.3800 the figure in the near term. Analysts at KBC Bank suggested “We expect the ECB to avoid a break of the 1.40 level with talk or if needed action. In a longer term perspective, we still look to sell EUR/USD in the 1.3711 to 1.40 area, but are not in a hurry to rush in”.

EUR/USD key levels

The pair is now up 0.73% at 1.3781 with the next resistance at 1.3800 (psychological level) ahead of 1.3815 (high Nov.14 2011) and then 1.3859 (high Nov.11 2011). On the other hand, a breakdown of 1.3662 (low Oct.220 would open the door to 1.3615 (38.2% of 1.3472 -1.3704) and finally 1.3600 (psychological level).
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