11 Oct 2013
EUR/USD deflates towards 1.3520
FXstreet.com (Edinburgh) -The shared currency is now accelerating its correction lower, taking the EUR/USD to a test session lows in sub-1.3530 levels.
EUR/USD keeps the positive, eyes on US
Despite the correction, the pair is netting a positive day although it seems unable to avoid a negative weekly close so far, with the resistance band at 1.3600/50 still standing as a tough barrier. In the meantime, markets remain cautious, as a meeting has started between congressional leaders in the White House, in order to reach a deal to rise the debt ceiling and reopen the US federal shutdown. Camilla Sutton, Strategist at Scotiabank, argued that technical studies now are mixed, adding, “as EUR sits in a relatively narrow 3-week range, technicals are proving less useful, suggesting there is better risk/reward opportunities than EUR/USD. Support lies initially at yesterday’s low of 1.3488, followed by the recent low of 1.3462; while resistance lies at 1.3600 followed by the range high of 1.3646”.
EUR/USD levels to watch
The pair is now up 0.10% at 1.3522 and a breach of 1.3518 (low Oct.11) would target 1.3488 (low Oct.10) en route to 1.3467 (low Sep.30). On the flip side, the initial hurdle aligns at 1.3605 (high Oct.9) ahead of 1.3607 (high Oct.8) and then 1.3631 (high Oct.4).
EUR/USD keeps the positive, eyes on US
Despite the correction, the pair is netting a positive day although it seems unable to avoid a negative weekly close so far, with the resistance band at 1.3600/50 still standing as a tough barrier. In the meantime, markets remain cautious, as a meeting has started between congressional leaders in the White House, in order to reach a deal to rise the debt ceiling and reopen the US federal shutdown. Camilla Sutton, Strategist at Scotiabank, argued that technical studies now are mixed, adding, “as EUR sits in a relatively narrow 3-week range, technicals are proving less useful, suggesting there is better risk/reward opportunities than EUR/USD. Support lies initially at yesterday’s low of 1.3488, followed by the recent low of 1.3462; while resistance lies at 1.3600 followed by the range high of 1.3646”.
EUR/USD levels to watch
The pair is now up 0.10% at 1.3522 and a breach of 1.3518 (low Oct.11) would target 1.3488 (low Oct.10) en route to 1.3467 (low Sep.30). On the flip side, the initial hurdle aligns at 1.3605 (high Oct.9) ahead of 1.3607 (high Oct.8) and then 1.3631 (high Oct.4).