25 Jul 2013
EUR/USD rally paused for a day. More upside to come or is correction just starting?
FXstreet.com (Barcelona) - On the back of better-than-expected economic data out of the US Wednesday, Treasury yields rose and forced the greenback higher against other currencies – which forced the EUR/USD lower for a day.
EUR/USD should see more volatility Thursday as more data due out in Europe and the US
The EUR/USD cross had its first down session in the last five days Wednesday after better-than-expected housing and manufacturing data came out early in the US session. The EUR/USD was overbought and due for a pullback anyway, but the data just hastened the corrective action.
Several potentially market-moving data points are due out Thursday which include the 08:00 GMT release of Germany’s Current Assessment, Business Climate and Expectations surveys. Additionally, US Durable Goods and Weekly Jobless Claims data in the US – both of which are due out at 12:30 GMT.
Technical outlook for EUR/USD
Technicians remain bullish of the EUR/USD in the short-term and are taking a “buy the dip” stance towards the cross – at least until major resistance at 1.3417 is tested. Very short-term resistance comes in at Wednesday’s high of 1.3255 and is followed by Fibonacci projections at 1.3321 and 1.3364. Short-term support comes in at Tuesday’s low of 1.3163 and is followed by additional support at the 7/18 closing low of 1.3171.
EUR/USD should see more volatility Thursday as more data due out in Europe and the US
The EUR/USD cross had its first down session in the last five days Wednesday after better-than-expected housing and manufacturing data came out early in the US session. The EUR/USD was overbought and due for a pullback anyway, but the data just hastened the corrective action.
Several potentially market-moving data points are due out Thursday which include the 08:00 GMT release of Germany’s Current Assessment, Business Climate and Expectations surveys. Additionally, US Durable Goods and Weekly Jobless Claims data in the US – both of which are due out at 12:30 GMT.
Technical outlook for EUR/USD
Technicians remain bullish of the EUR/USD in the short-term and are taking a “buy the dip” stance towards the cross – at least until major resistance at 1.3417 is tested. Very short-term resistance comes in at Wednesday’s high of 1.3255 and is followed by Fibonacci projections at 1.3321 and 1.3364. Short-term support comes in at Tuesday’s low of 1.3163 and is followed by additional support at the 7/18 closing low of 1.3171.