9 Oct 2013
EURUSD ready to test 1.3500?
FXstreet.com (Edinburgh) -The offered tone persists around the shared currency on Wednesday, dragging the EUR/USD to weekly lows in the vicinity of 1.3510.
EUR/USD vulnerable ahead of FOMC minutes
The pair quickly (ignored) shrugged off Yellen’s nomination to succeed Bernanke from February 2014, and kept heading south towards the key support at 1.3500. The next big event risk for the pair will be the FOMC minutes due in the European evening. In the opinion of analysts at TD Securities, “The USD side of the equation still remains the bigger influence for the moment, and the FOMC minutes this afternoon is the next clear catalyst in that regard. We continue to note that yield spreads are still more consistent with EUR/USD closer to 1.30/32 on a historic basis, and on the charts, the overnight move lower looks to have more room to run before reaching key support. The September FOMC surprise left a gap on the charts at 1.3424/38—the clearest important support zone for the coming days”.
EUR/USD key levels
The pair is now losing 0.45% at 1.3511 and a breakdown of 1.3505 (low Oct.2) would target 1.3467 (low Sep.30) and then 1.3462 (low Sep.25). On the flip side, the initial resistance lies at 1.3582 (high Oct.8) followed by 1.3591 (high Oct.7) and finally 1.3607 (high Oct.8).
EUR/USD vulnerable ahead of FOMC minutes
The pair quickly (ignored) shrugged off Yellen’s nomination to succeed Bernanke from February 2014, and kept heading south towards the key support at 1.3500. The next big event risk for the pair will be the FOMC minutes due in the European evening. In the opinion of analysts at TD Securities, “The USD side of the equation still remains the bigger influence for the moment, and the FOMC minutes this afternoon is the next clear catalyst in that regard. We continue to note that yield spreads are still more consistent with EUR/USD closer to 1.30/32 on a historic basis, and on the charts, the overnight move lower looks to have more room to run before reaching key support. The September FOMC surprise left a gap on the charts at 1.3424/38—the clearest important support zone for the coming days”.
EUR/USD key levels
The pair is now losing 0.45% at 1.3511 and a breakdown of 1.3505 (low Oct.2) would target 1.3467 (low Sep.30) and then 1.3462 (low Sep.25). On the flip side, the initial resistance lies at 1.3582 (high Oct.8) followed by 1.3591 (high Oct.7) and finally 1.3607 (high Oct.8).