EUR/USD pausing ahead of a continuation

By FXstreet.com | August 11, 2014 AAA

FXStreet (Guatemala) - EUR/USD is trading at 1.3384, down -0.18% on the day, having posted a daily high at 1.3413 and low at 1.3380.

EUR/USD has seen some selling pressure ahead of a week that will start to pick up. We get the CPI’s for the EZ. From the US, we see Retail Sales on Wednesday and Industrial Production, the Empire State Manufacturing index and the Univ. of Michigan's Confidence index will then come in in Friday.

EZ enjoys no momentum

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that the available data indicates that the euro zone economy enjoys no momentum. “Questions have been raised whether the growth it has reported (0.2% in Q1) is sufficient to signal that the recession has truly ended. Draghi's formulation of the recovery being weak, fragile, and uneven is not inconsistent with this view."

EUR/USD resting up before further downside

Analysts at TD Securities explained that technically, the EUR/USD price signals suggest some risk of a bounce near-term; above 1.3425/35 may see the EUR rally to the low 1.35s before the downtrend resumes.

EUR/USD hourly levels

Current price is 1.3385, with resistance ahead at 1.3391 (Hourly 200 SMA), 1.3391 (Hourly 20 EMA), 1.3392 (Weekly Classic PP), 1.3395 (Daily Classic PP) and 1.3413 (Daily Open). Next support to the downside can be found at 1.3380 (Daily Low), 1.3377 (Hourly 100 SMA), 1.3363 (Monthly Low), (Weekly Low) and (YTD Low).

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