EUR/USD swallowed another weak German report

By FXstreet.com | July 07, 2014 AAA

FXStreet (Moscow) - EUR/USD opened the day at 1.3604, slid to 1.3599 low at the moment, and is already on the way back up.

Peace and quiet

The euro looks stable around the recent lows, practically ignoring the worse than expected data from Germany, and not trying to follow the recent GBP/USD slide. The pair may remain the status quo thanks to unchanged monetary stance of the ECB. It means there are no additional arguments in favor of the euro selling except very weak economic data from the euro zone, and very strong economic data from the USA. Thus, the consolidation in narrow ranges on the back of empty calendar might be possible. The just released German Trade Balance prove to be above expectations, however, if you dig dipper, you may see weaker exports (-1.1% vs -0.3% expected), and imports (-3.4% vs +0.5% expected). Although the euro hardly moved on the release, this is another argument in favor of economy deterioration.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3597, with support below at 1.3584, 1.3563 and 1.3550, with resistance above at 1.3618, 1.3631, and 1.3652. Hourly Moving Averages are mixed, with the 200SMA at 1.3635 and the daily 20EMA bearish at 1.3623. Hourly RSI is bullish at 54.

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