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16 Sep 2013
EUR/USD weakens below 1.3350
FXstreet.com (Edinburgh) -The bloc currency is now correcting lower from today’s peaks beyond 1.3380, dragging the EUR/USD to test the mid 1.33s after the release of consumer prices in the euro zone.
EUR/USD looking to 1.3400/50
The pair quickly left the boundaries of last Friday’s close around the 1.3300 handle after Larry Summers said no to be the Fed’s next Chairman, removing the main obstacle for Janet Yellen to succeed Bernanke. In the data front, core consumer prices in the euro area expanded at an annual pace of 1.1% during August, missing the median at 1.3% and matching July’s print. The headline CPI advanced 1.3% on a yearly basis, matching estimates albeit lower than the previous reading. In the view of Westpac Global Strategy Group, “A soft touch from the Fed (including Bernanke press conference) should see decent trade in the 1.3450/1.3500 region amid broad USD weakness… Our multi-week bias is to sell rallies on likely growth divergence, with much of Europe’s "good" economic news probably already behind us”.
EUR/USD key levels
As of writing the pair is advancing 0.36% at 1.3342 facing the next hurdle at 1.3398 9high Aug.28). On the flip side, the immediate support lies at 1.3243 (low Sep.11) followed by 1.3230 (low Sep.10) and finally 1.3228 (MA10d).
EUR/USD looking to 1.3400/50
The pair quickly left the boundaries of last Friday’s close around the 1.3300 handle after Larry Summers said no to be the Fed’s next Chairman, removing the main obstacle for Janet Yellen to succeed Bernanke. In the data front, core consumer prices in the euro area expanded at an annual pace of 1.1% during August, missing the median at 1.3% and matching July’s print. The headline CPI advanced 1.3% on a yearly basis, matching estimates albeit lower than the previous reading. In the view of Westpac Global Strategy Group, “A soft touch from the Fed (including Bernanke press conference) should see decent trade in the 1.3450/1.3500 region amid broad USD weakness… Our multi-week bias is to sell rallies on likely growth divergence, with much of Europe’s "good" economic news probably already behind us”.
EUR/USD key levels
As of writing the pair is advancing 0.36% at 1.3342 facing the next hurdle at 1.3398 9high Aug.28). On the flip side, the immediate support lies at 1.3243 (low Sep.11) followed by 1.3230 (low Sep.10) and finally 1.3228 (MA10d).