EUR/USD back to 1.3200

By FXstreet.com | August 27, 2014 AAA

FXStreet (Edinburgh) - The single currency is returning to the 1.3200 area after lifting the EUR/USD to fresh highs near 1.3220 overnight.

EUR/USD testing weekly highs

Better tone from the risk sentiment is somehow helping the pair to put further distance from recent multi-month lows in the mid-1.3100s despite the absence of relevant data releases in the region during the first half of the week. However, today’s docket in the euro area is very interesting, as Germany will publish the unemployment rate and the advanced CPI figures for the month of August, and also EMU’s M3 Money Supply, Consumer Confidence and Economic Sentiment. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “The weekly chart continues to look somewhat head & shoulder-ish (albeit with a rather under-developed right-hand shoulder). The pattern implies a drop to 1.2810 and firm weekly resistance in the low 1.35s”.

EUR/USD key levels

At the moment the pair is up 0.08% at 1.3204 with the next resistance at 1.3221 (high Aug.25) ahead of 1.3297 (high Aug.22) and finally 1.3324 (high Aug.20). On the flip side, a breakdown of 1.3152 (trend low Aug.27) would aim for 1.3105 (low Sep.6 2013) and then 1.3089 (low Jul.19 2013).

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