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Forex pairs in this Article » EUR/USD
FXstreet.com (Athens)- The EUR/USD is trading well below the crucial resistance of 1.3300 area, as besides Italian disappointing data, the Euro land production output released worse than expected.

EUR/USD ahead of a crucial week ending; dismal Euro zone product output released earlier


The EUR/USD was initially wounded severely, on the discouraging news coming from Italy. At that time the pair was trading at approximately 1.3310 area, but the dismal Italian production output led the cross much lower below the crucial 1.3300 key-area, at around 1.3286 handle. The poor results that also released a bit earlier on behalf of the Euro zone, wound further the pair. Tomorrow, we will have labor data regarding the Euro zone for the second quarter, as well as the other coast of the Atlantic, news data is still second tier today; weekly jobless claims, seen ticking back up to 330K from a low 323K the prior week, plus import prices and the monthly budget data. Lastly, German Chancellor Merkel said a few minutes ago that “Euro aid program must remain linked to reforms.”

Technical Outlook on EUR/USD

According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/USD’s bounce off the 50% retracement of the July-to-August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made. We still look for a slide to 1.3020 and then 1.2904. These are the 61.8% and the 78.6% retracements of the move up from July, en route to the 1.2755 July low. Only an unexpected rise above the August 1.3453 high will allow gains to the 1.3500/20 region. This is not our favored view and we believe that the currency pair will see another leg lower towards 1.3050/25 instead.” The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. At this time of writing, the pair is trading close to its daily low at 1.3288, down 0.16%. Daily pivot point support can be found at 1.3277, 1.32444, 1.3211, and resistance at 1.3359, 1.3392 and 1.3426, respectively.
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