Forex: EUR/USD fails to break 100 MA resistance
Forex pairs in this Article »
EUR/USD
FXstreet.com (Barcelona) - EURUSD had a contrasting overnight session, with the first half characterised by slow ranging behaviour and the second, a sharp bounce following Chinese CPI.
Numbers for CPI came in slightly disappointingly overnight at 1.7%/1.9% YoY and -0.1%/0,1% MoM. However, Industrial Production, Retail Sales and Urban Investment all saw a bounce at 9.6%/9.4%/14.5%/14% and 20.7%/20.6% respectively. Spot climbed off its overnight low at 1.2733 to post a high at 1.2790, just above the hourly 100 MA at 1.2783 and just shy of the 1.2800 handle and R2 resistance at 1.2803.
However, despite its move higher, upside momentum has fallen back and seen spot decline ahead of the European close to where it currently trades at 1.2756. This morning has seen German CPI data largely come in line with expectations whilst French Industrial Output disappointed forecasts at -2.7%/-1%.
Independent Analyst for FXStreet.com, Richard Lee, believes that a firm layer of support has formed at the 1.2700 psychological level for EURUSD. He feels that the figure should provide for some upside potential in the near term with resistance targets ahead at 1.2900. He believes a break below would path the way for a move to 1.2602. The Danske Research team recommend a short of the pair with a stop at 1.2785. Whilst they don't highlight any targets they feel that so long as spot is below 1.2876/83 there will be selling pressure.
Numbers for CPI came in slightly disappointingly overnight at 1.7%/1.9% YoY and -0.1%/0,1% MoM. However, Industrial Production, Retail Sales and Urban Investment all saw a bounce at 9.6%/9.4%/14.5%/14% and 20.7%/20.6% respectively. Spot climbed off its overnight low at 1.2733 to post a high at 1.2790, just above the hourly 100 MA at 1.2783 and just shy of the 1.2800 handle and R2 resistance at 1.2803.
However, despite its move higher, upside momentum has fallen back and seen spot decline ahead of the European close to where it currently trades at 1.2756. This morning has seen German CPI data largely come in line with expectations whilst French Industrial Output disappointed forecasts at -2.7%/-1%.
Independent Analyst for FXStreet.com, Richard Lee, believes that a firm layer of support has formed at the 1.2700 psychological level for EURUSD. He feels that the figure should provide for some upside potential in the near term with resistance targets ahead at 1.2900. He believes a break below would path the way for a move to 1.2602. The Danske Research team recommend a short of the pair with a stop at 1.2785. Whilst they don't highlight any targets they feel that so long as spot is below 1.2876/83 there will be selling pressure.
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