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Forex pairs in this Article » EUR/USD (Barcelona) - The EUR/USD is trading rather counter-intuitively given the nonsense going on in Washington. It should be rallying further, right?

Big money not buying the idea that DC will fail to raise the US debt limit

Judging by the action in the EUR/USD, the big money players that drive the currency markets are not yet buying into the idea that the US politicians will fail to raise the debt ceiling by October 17th. Right now, nobody is that stressed out about the partial government showdown. The debt ceiling not being raised, however, would likely have broad ramifications reaching well beyond the US. As scary as that prospect is, the markets don’t seem to be pricing in such a scenario.

Tuesday, in addition to watching the “DC Two-Step”, EUR/USD will be monitoring the German Trade Balance, German Factory Orders and multiple Fed Head speeches.

Technical outlook for EUR/USD

Technicians say the EURUSD appears to have set a short-term top at 1.3645 last Thursday and now it appears that it is correcting lower for a few days. The next resistance above 1.3645 comes in at 1.3682. Support for the cross comes in at 1.3472 and then 1.3461.
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