FXStreet (Edinburgh) - After bottoming out near 1.3240, the EUR/USD managed to gather steam and pushed back to the 1.3265/70 region.
EUR/USD depressed by FOMC, PMI
Spot saw its downside accelerated on Wednesday after the FOMC minutes surprised investors with a more hawkish than expected tone. In the same direction, advanced manufacturing and services PMIs in Euroland for the moth of August came in on the softer camp, intensifying the decline. Ahead in the day, EMU’s Consumer Confidence (Aug) is the only event in the region while Initial Claims, the manufacturing PMI gauged by Markit and Existing Home Sales will grab the attention in the US session. “Candlesticks and the strong downward trend highlight the broad theme; the ADX is at 36, suggesting that the trend is strong and the RSI is at 28, suggesting there is still downside room before reaching oversold levels. Accordingly the near-term risk is for EUR to test down to support at 1.3220”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD key levels
The pair is now up 0.05% at 1.3267 with the next hurdle at 1.3324 (high Aug.20) ahead of 1.3364 (high Aug.19) and then 1.3380 (21-d MA). On the flip side, a breakdown of 1.3243 (low Sep.11 2013) would open the door to 1.3230 (low Sep.10 2013) and finally 1.3157 (low Sep.9).