20 Aug 2013
EUR/USD can anything stop the advance to 1.3500?
FXstreet.com (New York) - The EUR/USD foreign exchange rate recently surged to fresh highs at 1.3438 Tuesday during US trading, retracing slightly in recent moments.
In the United States, the Chicago Fed National Activity Index (July) came in at -0.15, compared to a previous figure of -0.23. In addition, the Redbook Index (MoM) grew by +0.2%, relative to a growth of +0.4% previously. Finally, the Redbook Index (YoY) yielded a figure of 3.4%, compared to +3.7% previously.
EUR/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/USD broke the June-to-August resistance line at 1.3397 and the August high at 1.3401 A rise above the latter and the next higher 1.3419 June peak would suggest ongoing strength to 1.3500/20, the minor psychological level and 13 February high. This is regarded as the last defense for the 1.3711 February high. We do not favor such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark. Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure. Failure here will target the 1.3000 region. Loss of this zone is needed to re-target the 1.2755/40 July and April lows.”
EUR/USD technical levels
Following the earlier peak, the EUR/USD has retreated back to the critical 1.3417 resistance in these moments, securing a robust advance of +0.66% above its opening. In terms of the technical levels, the EUR/USD will look to test resistance at its previous high of 1.3417, onto 1.3435, and finally 1.3477, calculates the Mataf.net analyst team.
In the United States, the Chicago Fed National Activity Index (July) came in at -0.15, compared to a previous figure of -0.23. In addition, the Redbook Index (MoM) grew by +0.2%, relative to a growth of +0.4% previously. Finally, the Redbook Index (YoY) yielded a figure of 3.4%, compared to +3.7% previously.
EUR/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/USD broke the June-to-August resistance line at 1.3397 and the August high at 1.3401 A rise above the latter and the next higher 1.3419 June peak would suggest ongoing strength to 1.3500/20, the minor psychological level and 13 February high. This is regarded as the last defense for the 1.3711 February high. We do not favor such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark. Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure. Failure here will target the 1.3000 region. Loss of this zone is needed to re-target the 1.2755/40 July and April lows.”
EUR/USD technical levels
Following the earlier peak, the EUR/USD has retreated back to the critical 1.3417 resistance in these moments, securing a robust advance of +0.66% above its opening. In terms of the technical levels, the EUR/USD will look to test resistance at its previous high of 1.3417, onto 1.3435, and finally 1.3477, calculates the Mataf.net analyst team.