EUR/USD firmer, eyes on 1.3400

By FXstreet.com | August 01, 2014 AAA

FXStreet (Edinburgh) - After dipping around the 1.3380 area, the EUR/USD is now gathering pace and is looking to regain the 1.3400 handle.

EUR/USD focus on Payrolls

Spot quickly shrugged off the tepid results from manufacturing PMI prints in Euroland for the month of July, now pointing to retake the 1.3400 handle as markets are heading towards July’s Payrolls in the US economy (233K exp.). The ongoing rebound also gets tailwinds from the current GBP weakness, increasing the demand for the EUR/GBP. According to Quek Ser Leang, Market Strategist at UOB Group, “the undertone remains weak and unless there is a break above the key resistant at 1.3445, the prevalent risk still appears to be on the downside. Allow for a recovery towards 1.3415/20 but as long as 1.3445 is intact, this should lead to a retest of the recent low near 1.3365/70”.

EUR/USD levels to watch

The pair is now up 0.02% at 1.3394 with the next hurdle at 1.3416 (high Jul.30) ahead of 1.3437 (10-d MA) and finally 1.3444 (high Jul.29). On the downside, a breach of 1.3366 (2014 low Jul.30) would open the door to 1.3359 (low Nov.12 2013) and then 1.3345 (low Nov. 11 2013).

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