23 Sep 2013
EUR/USD clinging to 1.3500; can it hold on?
FXstreet.com (London) - EUR/USD remains in positive territory, although the pair has moved lower over the last few sessions, drifting away from the high 1.3569 and finding a low of 1.3470.
Gareth Berry, Strategist at UBS said, “We saw keen net selling of dollars in the immediate aftermath of last week's FOMC decision. The capitulation benefitted the euro most. On Wednesday alone, we registered the strongest one-day buying of EURUSD in three months of trading”. Meanwhile, the German coalition could drag on for sometime with Merkel’s CDU’s party missing a majority win. Teams at TD securities noted the September flash PMIs were mixed, with stronger than expected services in France at 50.7 (cons 49.6, highest since Jan‘12) and Germany at 54.4 (cons 53.0, highest since Feb ‘12), but weaker manufacturing at 51.3 in Germany (cons 52.2) and 49.5 in France (cons 50.1). “The details in the French survey continue to be softer, with on-going job losses and new business volumes unchanged on the month, while in Germany, both of these sub indices showed further gains”.
EUR/USD Levels
The 20 DMA is 1.3314, the 50 DMA is 1.3293 and the 200 DMA is 1.3166. RSI (14) reads 41.14 while supports are coming in at 1.3409, 1.3453, 1.3477, and 1.3498. Spot is currently 1.3500. Resistances are 1.3520, 1.3577, 1.3598, 1.3610 and 1.3711.
Gareth Berry, Strategist at UBS said, “We saw keen net selling of dollars in the immediate aftermath of last week's FOMC decision. The capitulation benefitted the euro most. On Wednesday alone, we registered the strongest one-day buying of EURUSD in three months of trading”. Meanwhile, the German coalition could drag on for sometime with Merkel’s CDU’s party missing a majority win. Teams at TD securities noted the September flash PMIs were mixed, with stronger than expected services in France at 50.7 (cons 49.6, highest since Jan‘12) and Germany at 54.4 (cons 53.0, highest since Feb ‘12), but weaker manufacturing at 51.3 in Germany (cons 52.2) and 49.5 in France (cons 50.1). “The details in the French survey continue to be softer, with on-going job losses and new business volumes unchanged on the month, while in Germany, both of these sub indices showed further gains”.
EUR/USD Levels
The 20 DMA is 1.3314, the 50 DMA is 1.3293 and the 200 DMA is 1.3166. RSI (14) reads 41.14 while supports are coming in at 1.3409, 1.3453, 1.3477, and 1.3498. Spot is currently 1.3500. Resistances are 1.3520, 1.3577, 1.3598, 1.3610 and 1.3711.