EUR/USD fails to hold above 1.3400

By FXstreet.com | Updated August 13, 2014 AAA

FXStreet (Córdoba) - The EUR/USD failed to hold above the 1.3400 level and pulled back half of its post US retail sales rally.

The EUR/USD rose sharply and peaked at 1.3414 after the greenback was hit by disappointing retail sales figures. However, the pair slid back below the psychological level shortly after as investors seem unwilling to build long positions on the European currency that remains close to its 2014 lows. At time of writing, the EUR/USD is trading at 1.3375, still a few pips above its opening price.

"Hopes for a clear divergence between US and European economic fortunes are dimming as growth around the globe seems sluggish at best", said Jamie Coleman, analyst at FXBeat. "The US is the best of the bunch, but not by a wide margin. Seems like we are in a pattern of two steps forward, followed by one step back. You move forward, but at a very choppy pace".

EUR/USD technical levels

As for technical levels, the EUR/USD could find next supports at 1.3332 (2014 low Aug 6), 1.3300/1.3295 (psychological level/Nov 7 low) and not much till the 1.3250 area (mid-September lows). On the other hand, resistances could be found at 1.3414 (Aug 13 high),1.3432 (Aug 8 high) and 1.3444 (Aug 1 high).

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    EUR/USD Falls During Wednesday Trading

  2. Forex News

    EUR/USD hovers around 1.1300, German labour report in focus

  3. Forex News

    EUR/USD failure to break above 1.1320/15 – DayTradeIdeas

  4. Forex News

    EUR/USD steadies below 1.1300 post FOMC, German CPI eyed

  5. Forex News

    Euro May Overlook Soft German CPI Data, Swiss Franc Under Fire

Trading Center