FXStreet (Edinburgh) - The shared currency has quickly faded the spike to session highs beyond 1.3530, now dragging the EUR/USD to test the lower band of the range near 1.3520.
EUR/USD weakness persists
The earlier bullish attempt proved to be ephemeral, as spot rapidly returned to the region of intraday lows around 1.3525/20 after reaching the vicinity of 1.3535. The speech by Buba’s Weidmann found no echoes amongst traders, now leaving spot exposed to the US Reuters/Michigan index. “With no signs of stabilization just yet, we continue to expect further downward pressure. 1.3540 is a strong resistant and this level is expected to cap any recovery. A break below the major support at 1.3500 could lead to a quick move towards the next support at 1.3475”, suggested Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD levels to watch
At the moment the pair is down 0.01% at 1.3523 with the immediate support at 1.3512 (low Jul.12) ahead of 1.3503 (low Jun.5) and then 1.3482 (low Feb.6). On the upside, a break above 1.3540 (high Jul.17) would target 1.3572 (high Jul.16) en route to 1.3595 (30-d MA).