EUR/USD deflates to 1.3670

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Edinburgh) - The single currency continues to correct from recent highs around 1.3700 the figure, now pushing the EUR/USD back to the 1.3675/70 region.



EUR/USD focus on GDP figures



After reaching fresh multi-week highs in the vicinity of the 1.3700 handle on Tuesday, spot resumed its downward path to the current 1.3680/70 band, as market participants expect the release of EMU’s GDP figures for the first quarter. In the US docket, the ADP report, Factory Orders numbers and Yellen’s speech will be in the limelight today. “The failure to move above 1.3700 (overnight high of 1.3699) coupled with the pullback from the top suggests the current movement is likely part of a consolidation phase. Expect sideway trading between 1.3660 and 1.3700 for today”, noted Quek Ser Leang, Market Strategist at UOB Group.



EUR/USD key levels



The pair is now flat at 1.3679 with the next resistance at 1.3701 (high Jul.1) followed by 1.3723 (high May 21) and finally 1.3734 (high May 19). On the flip side, a breakdown of 1.3674 (200-d MA) would expose 1.3641 (low Jun.30) and then 1.3610 (low Jun.27).



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