FXStreet (Edinburgh) - The shared currency is now picking up pace and lifting the EUR/USD back to challenge the significant 1.3200 barrier.
EUR/USD remains bearish
The bearish tone from Mario Drgahi at the Jackson Hole Symposium is still weighing on the pair at the beginning of the week. Although spot seems to have absorbed quite well the disappointment from the German IFO series, the results added to a negative streak of data releases in the euro region, supporting the idea of further easing by the ECB at some point in the medium term. Analysts at BTMU assessed, “The deteriorating euro-zone economic growth outlook appears in more marked contrast to the improving US growth outlook in the near-term undermining the relative appeal of the euro compared to the US dollar… The elevated scale of speculative euro shorts may help to dampen further downside in the near-term, although widening economic divergences still argue in favour of a weaker euro.
EUR/USD key levels
At the moment the pair is losing 0.30% at 1.3200 with the next support at 1.3157 (low Sep.9 2013) followed by 1.3105 (low Sep.6 2013) and finally 1.3089 (low Jul.19 2013). On the flip side, a breakout of 1.3297 (high Aug.22) would aim for 1.3324 (high Aug,20) and then 1.3361 (21-d MA).