4 Dec 2013
EUR/USD extends the bounce
FXstreet.com (Edinburgh) - After bottoming out near 1.3530, buying pressure is now pushing the EUR/USD to the 1.3555/60 area, ahead of the Fed’s Beige Book.
EUR/USD capped by 1.3600
The vicinity of 1.3600 the figure continues to offer strong resistance so far amidst generalized USD strength ahead of the Fed’s Beige Book. Mixed data in the US docket showed positive results from the trade balance and housing sector, although the ISM Non Manufacturing disappointed investors in November. “All of that fits with the bigger picture that a very slow turnaround for growth in Europe continues to contrast the quicker improvement in the US. Between a likely still dovish sounding ECB tomorrow and US data in the coming days, we should see further evidence of that theme, and that leaves us fundamentally bearish on EUR/USD in a broad sense”, observed analysts at TD Securities.
EUR/USD levels to consider
The pair is now down 0.20% at 1.3560 with the immediate support at 1.3525 (low Dec.2) ahead of 1.3515 (low Nov.26) and then 1.3508 (MA10d). On the flip side, a breakout of 1.3597 (high Dec.4) would open the door to 1.3614 (high Dec.3) and finally 1.3616 (high Dec.2).
EUR/USD capped by 1.3600
The vicinity of 1.3600 the figure continues to offer strong resistance so far amidst generalized USD strength ahead of the Fed’s Beige Book. Mixed data in the US docket showed positive results from the trade balance and housing sector, although the ISM Non Manufacturing disappointed investors in November. “All of that fits with the bigger picture that a very slow turnaround for growth in Europe continues to contrast the quicker improvement in the US. Between a likely still dovish sounding ECB tomorrow and US data in the coming days, we should see further evidence of that theme, and that leaves us fundamentally bearish on EUR/USD in a broad sense”, observed analysts at TD Securities.
EUR/USD levels to consider
The pair is now down 0.20% at 1.3560 with the immediate support at 1.3525 (low Dec.2) ahead of 1.3515 (low Nov.26) and then 1.3508 (MA10d). On the flip side, a breakout of 1.3597 (high Dec.4) would open the door to 1.3614 (high Dec.3) and finally 1.3616 (high Dec.2).