EUR/USD testing 1.3200… and below

By FXstreet.com | August 24, 2014 AAA

FXStreet (Edinburgh) - The selling pressure is not giving up on the single currency at the beginning of the week, dragging the EUR/USD to put the 1.3200 support to the test.

EUR/USD weaker, much weaker

Spot is following the dovish appreciations by BCE’s Mario Draghi over the weekend, printing fresh ytd lows in levels last seen in mid-September 2013. President Draghi left the door open for further easing in his speech at the Jackson Hole Symposium, taking a toll on the EUR. The German IFO indicator is due next in the euro area, although it will barely be a market mover against the current backdrop of increasing selling interest; in the US economy, the Services/Composite PMI gauged by Markit and New Home Sales will grab all the attention.

EUR/USD key levels

At the moment the pair is losing 0.35% at 1.3195 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).

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