29 Aug 2013
EUR/USD taking a hit, down to 1.3260
FXstreet.com (Edinburgh) -The selling pressure around the bloc currency is intensifying now, rapidly dragging the EUR/USD to fresh weekly lows near 1.3260 on Thursday.
EUR/USD focus on 1.3250 (May peaks)
The pair is accelerating its intraday decline since the recent failed attempts to follow through the 1.3400/20 resistance band, amidst increasing risk aversion on Syrian jitters. The inability of the pair to trespass that important upside barrier leaves the door wide open for further and deeper retracements. “In the near term, risks to EUR/USD look skewed to the downside given the heightened geopolitical risks as a military strike on Syria could be imminent. However, other factors currently pull in the other direction in EUR/USD as (i) EM central banks have been selling USD reserves to stem the currency depreciation and (ii) the latest set-back in US economic data has fuelled speculations of a more hesitant Fed”, assessed Pernile Nielsen, Analyst at Danske Bank.
EUR/USD key levels
At the moment the pair is down 0.47% at 1.3275 and a breach of 1.3206 (low Aug.5) would aim for 1.3188 (low Aug.2) and finally 1.3164 (low Jul.23). On the upside, the initial hurdle lines up at 1.3343 (high Aug.29) followed by 1.3358 (MA10d) and then 1.3399 (high Aug.28).
EUR/USD focus on 1.3250 (May peaks)
The pair is accelerating its intraday decline since the recent failed attempts to follow through the 1.3400/20 resistance band, amidst increasing risk aversion on Syrian jitters. The inability of the pair to trespass that important upside barrier leaves the door wide open for further and deeper retracements. “In the near term, risks to EUR/USD look skewed to the downside given the heightened geopolitical risks as a military strike on Syria could be imminent. However, other factors currently pull in the other direction in EUR/USD as (i) EM central banks have been selling USD reserves to stem the currency depreciation and (ii) the latest set-back in US economic data has fuelled speculations of a more hesitant Fed”, assessed Pernile Nielsen, Analyst at Danske Bank.
EUR/USD key levels
At the moment the pair is down 0.47% at 1.3275 and a breach of 1.3206 (low Aug.5) would aim for 1.3188 (low Aug.2) and finally 1.3164 (low Jul.23). On the upside, the initial hurdle lines up at 1.3343 (high Aug.29) followed by 1.3358 (MA10d) and then 1.3399 (high Aug.28).