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11 Sep 2013
EUR/USD bouncing off 1.3240
FXstreet.com (Edinburgh) -After dropping to the proximity of 1.3240, the EUR/USD found some grip and is now back around 1.3260 amidst a risk-on scenario.
EUR/USD range-bound on empty docket
The pair looks set to remain within the weekly range on Wednesday, as data in both Euroland and US are scarce and non-relevant. The situation in the Middle East is now in the back burner after President Obama decided to give diplomacy a chance in trying to solve the issue regarding Syrian chemical weapons. Although the scenario remains fragile, the news helped to prop up the recent risk-rally. Richard Franulovich, Strategist at Westpac, commented, “Next week's FOMC meeting is unlikely to deliver a fresh boost to the USD either - a modest $10-15bn tapering of asset purchases is surely priced in and Bernanke will more likely than not disabuse markets that the Fed is on the cusp of tighter monetary policy. EUR/USD should at least hold its own over this period and may even make another run at the recent 1.34+ highs… However, sellers of any near term EUR/USD strength should ultimately be rewarded. Into year's end the odds favour a shift in relative data momentum back in the US' favour”.
EUR/USD critical levels
The pair is now losing 0.02% at 1.3264 and a breakdown of 1.3230 (low Sep.10) would aim for 1.3210 (MA10d) and then 1.3157 (low Sep.9). On the flip side, the initial resistance aligns at 1.3282 (high Sep.11) followed by 1.3289 (MA30d) and then 1.3298 (low Aug.22).
EUR/USD range-bound on empty docket
The pair looks set to remain within the weekly range on Wednesday, as data in both Euroland and US are scarce and non-relevant. The situation in the Middle East is now in the back burner after President Obama decided to give diplomacy a chance in trying to solve the issue regarding Syrian chemical weapons. Although the scenario remains fragile, the news helped to prop up the recent risk-rally. Richard Franulovich, Strategist at Westpac, commented, “Next week's FOMC meeting is unlikely to deliver a fresh boost to the USD either - a modest $10-15bn tapering of asset purchases is surely priced in and Bernanke will more likely than not disabuse markets that the Fed is on the cusp of tighter monetary policy. EUR/USD should at least hold its own over this period and may even make another run at the recent 1.34+ highs… However, sellers of any near term EUR/USD strength should ultimately be rewarded. Into year's end the odds favour a shift in relative data momentum back in the US' favour”.
EUR/USD critical levels
The pair is now losing 0.02% at 1.3264 and a breakdown of 1.3230 (low Sep.10) would aim for 1.3210 (MA10d) and then 1.3157 (low Sep.9). On the flip side, the initial resistance aligns at 1.3282 (high Sep.11) followed by 1.3289 (MA30d) and then 1.3298 (low Aug.22).