EUR/USD flirting with 1.3400

By FXstreet.com | August 08, 2014 AAA

FXStreet (Edinburgh) - After hitting 3-day highs beyond 1.3400 the figure, the EUR/USD has now returned to the 1.3390/85 band.

EUR/USD firmer post-ECB

The EUR managed to leave behind yesterday’s troughs post-Draghi’s press conference, climbing beyond the 1.3400 key barrier during the European morning. Spot is trading on a firmer footing despite today’s preponderance of the risk-off trade, with risk aversion stemming from geopolitical jitters in Russia-Ukraine, the Gaza strip and Iraq. “The high of 1.3393 fell short of the recovery target of 1.3400. While the downward momentum remains patchy, the immediate outlook is negative unless there is a break above the now very strong resistant at 1.3400. However, the downside risk is likely limited to the strong support at 1.3330 and a sustained drop appears unlikely for now”, observed Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD levels to watch

As of writing the pair is up 0.17% at 1.3386 with the next resistance at 1.3425 (high Aug.5) ahead of 1.3433 (high Aug.4) and finally 1.3445 (high Aug.1). On the flip side, a breach below 1.3344 (low Aug.8) would aim for 1.3337 (low Aug.7) and then 1.3333 (2014 low Aug.6).

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