Filed Under:
Forex pairs in this Article » EUR/USD (Athens) - The EUR/USD fell apart on Thursday, mostly due to unexpected weakness in the German labor market report.

EUR/USD touching significant support areas on dismal Euro zone news

It was a harsh day for the single currency, as it lost solid ground against its leading counter-part. Poor retail sales in Sweden and unexpected weakness in the German labor market report (unemployment rose 7k versus the consensus forecast of a 5k drop) were the ostensible drivers. What’s more, Bundesbank cut the annual growth forecast for 2013 in June to 0.3%, despite predicting a gradual recovery for the rest of the year. Reports saying that ‘Russia Sends Armed Ships to the Mediterranean’ as well as high expectations for Fed tapering next month, coupled with yesterday's poor 5-year auction) is also impacting on the further strengthening of the greenback.

Technical outlook and Strategic bias on EUR/USD

The euro has found a modicum of support near $1.3240. However, the selling pressure may not have been exhausted. Many observers had been looking for one more push higher to sell into and now are tempted to jump aboard. At the time of writing, the pair is trading at 1.3222, down 0.87% , which is the daily low. Briefing the technicals, the EUR/USD is testing of support at 1.3251, a break of which will open up 1.3197, notes the analyst team. The Trend Index shows the pair to be slightly bullish. Daily pivot point support and resistance can be found at S3:1.3208 S2: 1.3197 S3: 1.3169 R1: 1.3300 R2:1.3368 R3: 1.3402
comments powered by Disqus