EUR/USD remains capped by 1.3400

By FXstreet.com | Updated August 18, 2014 AAA

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).

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