6 Nov 2013
EUR/USD resilient above 1.3500
FXstreet.com (Edinburgh) - The bid tone around the shared currency is getting firmer on Wednesday, with the EUR/USD consolidating in the upper band of the intraday range around 1.3510/20.
EUR/USD clings to 1.3500, ECB looms
The pair keeps the area around session highs despite EMU’s retail sales disappointed investors during September, contracting 0.6% inter-month and expanding at an annual pace of 0.3%, vs. -0.45 and 0.7%, respectively. Next on tap will be German Factory Orders, with prior surveys expecting an expansion of 0.5% on a monthly basis. Martin van Vliet, Analyst at ING, assessed, “September’s fall in Eurozone retail sales reinforces pressure on ECB-president Draghi to deliver a dovish message at tomorrow’s press conference… That being said, growth momentum in consumer spending clearly remains weak… Against this backdrop, retail pricing power is set to remain weak in the foreseeable future, helping to keep core inflation across the region subdued”.
EUR/USD critical levels
The pair is now up 0.26% at 1.3506 and a break above 1.3525 (high Nov.5) would target 1.3589 (high Nov.1) and then 1.3605 (MA21d). On the downside, the immediate support lies at 1.3442 (low Nov.4) ahead of 1.3421 (38.2% of 1.2755-1.3833) and finally 1.3399 (high Aug.28).
EUR/USD clings to 1.3500, ECB looms
The pair keeps the area around session highs despite EMU’s retail sales disappointed investors during September, contracting 0.6% inter-month and expanding at an annual pace of 0.3%, vs. -0.45 and 0.7%, respectively. Next on tap will be German Factory Orders, with prior surveys expecting an expansion of 0.5% on a monthly basis. Martin van Vliet, Analyst at ING, assessed, “September’s fall in Eurozone retail sales reinforces pressure on ECB-president Draghi to deliver a dovish message at tomorrow’s press conference… That being said, growth momentum in consumer spending clearly remains weak… Against this backdrop, retail pricing power is set to remain weak in the foreseeable future, helping to keep core inflation across the region subdued”.
EUR/USD critical levels
The pair is now up 0.26% at 1.3506 and a break above 1.3525 (high Nov.5) would target 1.3589 (high Nov.1) and then 1.3605 (MA21d). On the downside, the immediate support lies at 1.3442 (low Nov.4) ahead of 1.3421 (38.2% of 1.2755-1.3833) and finally 1.3399 (high Aug.28).