13 Sep 2013
EUR/USD capped by 1.3300
FXstreet.com (Athens)- The EUR/USD is still hovering well below 1.3300, after having closed flat on Thursday, recovering from previous lows as the dollar was sold across the board.
EUR/USD sitting on the fence waiting for the crucial FOMC meeting
While the US jobless claims touched the lowest level since the April of 2006, even with the “technology support”, the EUR/USD was very resilient to the above data. Bloomberg consensus forecasts call for a $10B reduction in QE3 next week, from $45B to $35B in UST purchases, MBS decreasing at $40B. Traders are now focused on any news coming out of the US as this is the most important story now, after the war in Syria is put on hold. Investors should be aware of the news data coming today from the US retail sales, as after the recent rally on oil and gas prices, a softer reading would not taken aback the traders. However, retails sales might influence to a more or less extent, the cross trend.
Strategic and Technical Bias on EUR/AUD
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/USD’s bounce off the 50% retracement of the July-to-August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made. We still look for a slide to 1.3020 and then 1.2904. These are the 61.8% and the 78.6% retracements of the move up from July, en route to the 1.2755 July low. Only an unexpected rise above the August 1.3453 high will allow gains to the 1.3500/20 region. This is not our favored view and we believe that the currency pair will see another leg lower towards 1.3050/25 instead.”
EUR/USD sitting on the fence waiting for the crucial FOMC meeting
While the US jobless claims touched the lowest level since the April of 2006, even with the “technology support”, the EUR/USD was very resilient to the above data. Bloomberg consensus forecasts call for a $10B reduction in QE3 next week, from $45B to $35B in UST purchases, MBS decreasing at $40B. Traders are now focused on any news coming out of the US as this is the most important story now, after the war in Syria is put on hold. Investors should be aware of the news data coming today from the US retail sales, as after the recent rally on oil and gas prices, a softer reading would not taken aback the traders. However, retails sales might influence to a more or less extent, the cross trend.
Strategic and Technical Bias on EUR/AUD
According to Karen Jones, Head Technical Analyst of Commerzbank, “EUR/USD’s bounce off the 50% retracement of the July-to-August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made. We still look for a slide to 1.3020 and then 1.2904. These are the 61.8% and the 78.6% retracements of the move up from July, en route to the 1.2755 July low. Only an unexpected rise above the August 1.3453 high will allow gains to the 1.3500/20 region. This is not our favored view and we believe that the currency pair will see another leg lower towards 1.3050/25 instead.”