11 Nov 2013
EUR/USD clings to the 1.3400 area
FXstreet.com (Edinburgh) -It seems the upside of the shared currency is taking a breather on Monday, with the EUR/USD now easing some ground from levels just above 1.3400 the figure.
EUR/USD follows the risk-on sentiment
The pair have started the trading week on the right footing so far, recovering from last week’s sharp sell-off post-ECB and October’s Payrolls, amidst a downbeat tone surrounding the greenback. Ahead in the week, the advanced measure of EMU’s GDP during the third quarter is due, and according to S.Gallo and G.Anderson, Strategists at BMO, “we look for the Q3 release of GDP for the bloc to at most cap rallies in the EUR, particularly because most of the Q3 data have not pointed to a contraction for the quarter as a whole. The big surprise however would be a flat or negative reading, and we expect such a reading to weigh on Euro Area banks’ shares and the EUR together. However, the likelihood of a flat or negative reading appears somewhat low”.
EUR/USD key levels
As of writing the pair is now advancing 0.27% at 1.3396 with the next resistance at 1.3438 (high Nov.8) followed by 1.3523 (MA10d) and finally 1.3529 (high Nov.7). On the flip side, a break below 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.).
EUR/USD follows the risk-on sentiment
The pair have started the trading week on the right footing so far, recovering from last week’s sharp sell-off post-ECB and October’s Payrolls, amidst a downbeat tone surrounding the greenback. Ahead in the week, the advanced measure of EMU’s GDP during the third quarter is due, and according to S.Gallo and G.Anderson, Strategists at BMO, “we look for the Q3 release of GDP for the bloc to at most cap rallies in the EUR, particularly because most of the Q3 data have not pointed to a contraction for the quarter as a whole. The big surprise however would be a flat or negative reading, and we expect such a reading to weigh on Euro Area banks’ shares and the EUR together. However, the likelihood of a flat or negative reading appears somewhat low”.
EUR/USD key levels
As of writing the pair is now advancing 0.27% at 1.3396 with the next resistance at 1.3438 (high Nov.8) followed by 1.3523 (MA10d) and finally 1.3529 (high Nov.7). On the flip side, a break below 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.).