FXStreet (Edinburgh) - The EUR/USD is trading almost unchanged on Monday, although its upside still remains capped by the 1.3400 handle.

EUR/USD bounced off 1.3360

Spot is prolonging last week’s rebound from the 1.3360 zone against the backdrop of improving risk appetite and easing tensions, mainly from the Ukraine-Russia situation. The lack of relevant releases in both the euro bloc and the US economy will prompt spot to remain in a consolidative pattern pending cues from more significant events. Today’s docket showed a wider trade surplus in the euro region (€16.8 billion) during June while the NAHB index is due later in the US. “While upward momentum is improving, it does not appear to be strong enough to push EUR above the strong resistant at 1.3420. However, Friday’s low near 1.3360 is a strong support now and this level is expected to hold for today”, suggested Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD levels to consider

At the moment the pair is retreating 0.07% at 1.3391 with the next support at 1.3359 (low Aug.15) followed by 1.3348 (low Aug.14) and finally 1.3342 (low Aug.13). On the flip side, a breakout of 1.3415 (200-w MA) would target 1.3416 (high Aug.13) en route to 1.3433 (high Aug.8).

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center