FXStreet (Edinburgh) - After hitting fresh intraday lows near 1.3340, the EUR/USD is now extending the rebound to the vicinity of 1.3370, as buying interest seems to be creeping back to the markets.
EUR/USD supported at 2014 lows
The 1.3340/30 band remains a tough barrier for EUR-bears so far, as demonstrated by the current bounce off the area to test the 1.3370 level. However, weakness is set to remain around the EUR following lower consumer prices in Spain and Germany during July. Later on, US Retail Sales are due, with consensus pointing to a small gain of 0.2%, improving the recent weather-induced contractions. “Despite the decent bounce from the low of 1.3336, the up-tick is lacking in momentum. Expect 1.3350/1.3390 trading range for today but a clear break above 1.3390 would signal the start of a move towards last week’s high near 1.3430/35”, suggested Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD relevant levels
At the moment the pair is losing 0.03% at 1.3364 facing the next support at 1.3336 (low Aug.12) ahead of 1.3333 (2014 low Aug.6) and then 1.3318 (low Nov.8 2013). On the flip side, a breakout of 1.3386 (high Aug.12) would target 1.3389 (Tenkan Sen) en route to 1.3410 (high Aug.11).