FXStreet (Edinburgh) - The single currency continues its march north on Wednesday, lifting the EUR/USD to print fresh weekly highs in the 1.3150 neighbourhood.
EUR/USD stronger despite PMIs
The pair is trading on a firmer footing despite services PMIs in Euroland disappointed investors during August and retail sales in the region contracted 0.4% inter-month in July. Ahead in the day, US Factory Orders will be worth checking ahead of the Fed’s Beige Book due in the European evening. Better tone from the risk appetite following easing tensions in the Russia-Ukraine front plus positive readings in the Chinese economy and oversold levels in the exchange rate would be behind today’s up move. Eric Theoret, Currency Strategist at Scotiabank, commented, “trend and momentum indicators are weak, focus shifts to a break of 1.3100 and the 50% Fibo retracement level of the ‘whatever it takes’ rally—at 1.3018”.
EUR/USD levels to watch
As of writing the pair is up 0.14% at 1.3151 with the initial hurdle at 1.3196 (high Aug.29) followed by 1.3222 (high Aug.28) and finally 1.3274 (21-d MA). On the flip side, a breakdown of 1.3110 (low Sep.2) would open the door to 1.3105 (low Sep.6 2013) and then 1.3089 (low Jul.19 2013).