FXStreet (Edinburgh) - The EUR keeps the consolidative pattern alive on Wednesday, taking the EUR/USD to the area of 1.3180.
EUR/USD focus on German CPI
Spot remains unable to gather further traction today, now looking to consolidate the recent upside from troughs around the mid-1.31s posted in early trade. Ahead in the week, German CPI figures are due tomorrow along with several gauges of confidence and sentiment in the euro bloc. Market participants will remain cautious however, as another revision of the US GDP figures for the second quarter is due as well. Camilla Sutton, Chief FX Strategist at Scotiabank, notes the technicals remains bearish, adding “with both short and medium term studies warning of further downside risk. The RSI is at 25, which is approaching oversold levels; however downward pressure on spot could see this fall lower before the market rests to catch its breath. Support lies at the recent low of 1.3179; resistance comes in at 1.3220”.
EUR/USD levels to watch
At the moment the pair is up 0.09% at 1.3180 with the next hurdle at 1.3221 (high Aug.25) ahead of 1.3297 (high Aug.22) and then 1.3324 (high Aug.20). On the flip side, a breakdown of 1.3105 (low Sep.6 2013) would aim for 1.3089 (low Jul.19) and finally 1.3051 (low Jul.16 2013).