FXStreet (Edinburgh) - The single currency is intensifying the intraday drop, now dragging the EUR/USD to fresh multi-month levels near 1.3270.
EUR/USD bearishness intact
The offered tone in the EUR is accelerating on Wednesday amidst the ongoing USD rally and in light of today’s key FOMC minutes due in the European evening. Nothing worth mentioning data wise in Euroland today, with German Producer Prices contracting 0.1% inter-month in July. “We still favour fading short-term EURUSD gains and continue to believe that medium-term trends are geared towards sub-1.30 levels in weeks ahead. The risk is that those short-term rallies extend through to the low 1.35s, however”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to watch
The pair is now retreating 0.31% at 1.3278 with the immediate support at 1.3254 (low Sep.13 2013) followed by 1.3243 (low Sep.11 2013) and finally 1.3230 (low Sep.10 2013). On the flip side, a breakout of 1.3364 (high Aug.19) would expose 1.3392 (21-d MA) and then 1.3399 (high Aug.18).