6 Sep 2013
EUR/USD weakness points to 1.3100
FXstreet.com (Edinburgh) -Miserable results from the German industrial sector during July are intensifying the bearish tone surrounding the shared currency on Friday, pushing the EUR/USD to test the 1.3115/10 area.
EUR/USD next leg lower shaping up?
The pair continues to meander around 7-week lows, just pips above the key support at the 1.3100 handle after the German industrial production contracted at a monthly pace of 1.7%, much lower than June’s 2.0% advance. Next on tap will be the US Non farm Payrolls, with market consensus expecting the US economy to have created 180K jobs in the last month, up from July’s 162K. In the aftermath of the ECB gathering on Thursday, Derek Halpenny, Head of Global Markets Research, assessed, “We still expect the ECB to lower the refinancing rate again. We recently pushed the timing of that move further out (3-6mths) and raised our EUR/USD short-term forecast accordingly. However, after listening to Draghi yesterday that change may have been premature. We sensed certainly that a rate cut is still very much on the cards”.
EUR/USD levels to watch
As of writing the pair is down 0.07% at 1.3110 with the initial support at 1.3104 (50% of 1.2755-1.3453) followed by 1.3089 (low Jul.19) and finally 1.3051 (low Jul.16). On the flip side, a break above 1.3147 (MA200d) would target 1.3223 (high Sep.5) en route to 1.3237 (high Sep.2).
EUR/USD next leg lower shaping up?
The pair continues to meander around 7-week lows, just pips above the key support at the 1.3100 handle after the German industrial production contracted at a monthly pace of 1.7%, much lower than June’s 2.0% advance. Next on tap will be the US Non farm Payrolls, with market consensus expecting the US economy to have created 180K jobs in the last month, up from July’s 162K. In the aftermath of the ECB gathering on Thursday, Derek Halpenny, Head of Global Markets Research, assessed, “We still expect the ECB to lower the refinancing rate again. We recently pushed the timing of that move further out (3-6mths) and raised our EUR/USD short-term forecast accordingly. However, after listening to Draghi yesterday that change may have been premature. We sensed certainly that a rate cut is still very much on the cards”.
EUR/USD levels to watch
As of writing the pair is down 0.07% at 1.3110 with the initial support at 1.3104 (50% of 1.2755-1.3453) followed by 1.3089 (low Jul.19) and finally 1.3051 (low Jul.16). On the flip side, a break above 1.3147 (MA200d) would target 1.3223 (high Sep.5) en route to 1.3237 (high Sep.2).