13 Nov 2013
EUR/USD comfortable around 1.3420
FXstreet.com (Edinburgh) - It seems that the EUR/USD found a comfortable area around 1.3420/30 on Wednesday, keeping the intraday range amidst mixed risk trends.
EUR/USD supported by 1.3410
Despite the apathetic trade, the pair found decent support around 1.3415/10, bouncing to the 1.3425/30 region afterwards. Subdued inflation figures in Spain, mixed results from the EMU’s industrial sector and lower Italian yields just added to the pair’s lack of direction, which remains posed to extend into the NA session as US data is scarce. Peter Vanden Houte, Analyst at ING, observed, “We don’t think that today’s figures cast doubt over the recovery in Europe, but it certainly shows that growth remains stuck in first gear. The weakness of the upturn means that not much is needed to stop it. And with growth likely to remain below potential for some time to come, the negative output gap continues to widen, which keeps downward pressure on inflation. In that regard, last week’s move by the ECB to lower its main refinancing rate certainly didn’t come too soon”.
EUR/USD key levels
At the moment the pair is losing 0.10% at 1.3420 and a breach of 1.3359 (low Nov.12) would target 1.3345 (low Nov.11) en route to 1.3318 (low Nov.8). On the upside, the immediate resistance lines up at 1.3456 (high Nov.13) ahead of 1.3466 (daily cloud top) and finally 1.3529 (high Nov.7
EUR/USD supported by 1.3410
Despite the apathetic trade, the pair found decent support around 1.3415/10, bouncing to the 1.3425/30 region afterwards. Subdued inflation figures in Spain, mixed results from the EMU’s industrial sector and lower Italian yields just added to the pair’s lack of direction, which remains posed to extend into the NA session as US data is scarce. Peter Vanden Houte, Analyst at ING, observed, “We don’t think that today’s figures cast doubt over the recovery in Europe, but it certainly shows that growth remains stuck in first gear. The weakness of the upturn means that not much is needed to stop it. And with growth likely to remain below potential for some time to come, the negative output gap continues to widen, which keeps downward pressure on inflation. In that regard, last week’s move by the ECB to lower its main refinancing rate certainly didn’t come too soon”.
EUR/USD key levels
At the moment the pair is losing 0.10% at 1.3420 and a breach of 1.3359 (low Nov.12) would target 1.3345 (low Nov.11) en route to 1.3318 (low Nov.8). On the upside, the immediate resistance lines up at 1.3456 (high Nov.13) ahead of 1.3466 (daily cloud top) and finally 1.3529 (high Nov.7