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20 Dec 2013
EUR/USD getting slammed over the last several days. ST correction or something more serious?
FXstreet.com (Barcelona) - The EUR/USD broke and closed below 1.3665 Thursday – opening up even more downside potential in the near term. The cross is getting close to being oversold and is now approaching support, though.
EUR/USD traders to digest European and US data points Friday
The data flow out of Europe this week has been a bit suspect as many of the data points came in below expectations or on the bearish side of the ledger. Meanwhile, regardless of the data points’ messages in the US, traders were forced to price in the commencement of the Fed’s QE-tapering program. The net result of this combination of influences has brought the EUR/USD tumbling down this week – easily slicing through the ST “correction support” level at 1.3665 outlined by technicians.
In terms of the directional drivers Friday for EUR/USD, the line-up is as follows:
• German Consumer Confidence Survey
• German PPI
• EuroZone Consumer Confidence
• US GDP
• US Personal Consumption Expenditure
• US Nomination Vote for Yellen
Technical outlook for EURUSD
Technicians say the EUR/USD may have confirmed that the recent up move in the cross was just a massive correction higher that topped at 1.3810. With the break of 1.3665 “correction support”, the next downside target became 1.3627 – the next Fibonacci projection line. Below that level, additional Fibonacci support comes in at 1.3603.
EUR/USD traders to digest European and US data points Friday
The data flow out of Europe this week has been a bit suspect as many of the data points came in below expectations or on the bearish side of the ledger. Meanwhile, regardless of the data points’ messages in the US, traders were forced to price in the commencement of the Fed’s QE-tapering program. The net result of this combination of influences has brought the EUR/USD tumbling down this week – easily slicing through the ST “correction support” level at 1.3665 outlined by technicians.
In terms of the directional drivers Friday for EUR/USD, the line-up is as follows:
• German Consumer Confidence Survey
• German PPI
• EuroZone Consumer Confidence
• US GDP
• US Personal Consumption Expenditure
• US Nomination Vote for Yellen
Technical outlook for EURUSD
Technicians say the EUR/USD may have confirmed that the recent up move in the cross was just a massive correction higher that topped at 1.3810. With the break of 1.3665 “correction support”, the next downside target became 1.3627 – the next Fibonacci projection line. Below that level, additional Fibonacci support comes in at 1.3603.