23 Aug 2013
EUR/USD is firmly bid
FXstreet.com (Barcelona) - EUR/USD has continued to advance throughout the morning in European markets and is firmly bid.
EUR/USD has breached into 1.3360 territory, through the overnight resistance and now eye’s 1.3380 which would be a score above yesterdays European highs of 1.3374. European markets have seen the German GDP QoQ for Q2 that arrived at 0.7% and in line with expectations. There is little left of the calendar for the pair today other than for the US data this afternoon in New Home Sales. Some analysts expect new home sales to fall by -2.8% M/M in July (mkt -2.0%), giving back some of the big 8.3% increase from the month before.
EUR/USD top formed
Senior Analyst, Axel Rudolph at Commerzbank said the negative divergence seen between the daily RSI and the EUR/USD's current August high at 1.3453 points to a top being formed. “Confirmation of this would be a drop through the steep two month support line at 1.3307 and a fall through Tuesday’s 1.3323 low. Only a drop through the next lower 1.3208/1.3188 support area will mean that a significant top has indeed been made.” He suggested that should an unexpected rise above the 1.3427 Wednesday high be seen, though, his view will probably be incorrect. “In this case, Tuesday’s 1.3453 peak should be overcome with the 1.3500/20 region then being reached. It consists of the minor psychological level and 13th February high. This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair is already topping out”.
EUR/USD has breached into 1.3360 territory, through the overnight resistance and now eye’s 1.3380 which would be a score above yesterdays European highs of 1.3374. European markets have seen the German GDP QoQ for Q2 that arrived at 0.7% and in line with expectations. There is little left of the calendar for the pair today other than for the US data this afternoon in New Home Sales. Some analysts expect new home sales to fall by -2.8% M/M in July (mkt -2.0%), giving back some of the big 8.3% increase from the month before.
EUR/USD top formed
Senior Analyst, Axel Rudolph at Commerzbank said the negative divergence seen between the daily RSI and the EUR/USD's current August high at 1.3453 points to a top being formed. “Confirmation of this would be a drop through the steep two month support line at 1.3307 and a fall through Tuesday’s 1.3323 low. Only a drop through the next lower 1.3208/1.3188 support area will mean that a significant top has indeed been made.” He suggested that should an unexpected rise above the 1.3427 Wednesday high be seen, though, his view will probably be incorrect. “In this case, Tuesday’s 1.3453 peak should be overcome with the 1.3500/20 region then being reached. It consists of the minor psychological level and 13th February high. This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair is already topping out”.