24 Dec 2013
EUR/USD off lows, still capped by 1.3700
FXstreet.com (Córdoba) - The EUR/USD recovered from daily lows and trimmed intraday losses heading into the early close in pre-Christmas trade.
The EUR/USD bottomed out at 1.3655 after a stronger-than-expected reading of November US durable goods orders, but the euro managed to bounce as the greenback lost momentum. At time of writing, the EUR/USD is trading at the 1.3675 zone, still 0.1% below its opening price.
EUR/USD perspective
Sharing her expertise, Valeria Bednarik, chief analyst at FXstreet.com noted that US data continues to improve, suggesting more tapering will come and therefore, more dollar strength. "But is still too early to make that call: if the 1.3620 Fibonacci support, the bearish acceleration may extend down to 1.3290, but will be only a break below this last, neckline of the possible double roof, that will suggest further midterm dollar strength", says Bednarik.
"As for the upside, the pair is now short term limited by 1.3700/20 area, albeit a price acceleration above 1.3831 year high is required to confirm an upward continuation towards 1.40 figure", the analyst added. "Still, any of it will likely happen this year".
The EUR/USD bottomed out at 1.3655 after a stronger-than-expected reading of November US durable goods orders, but the euro managed to bounce as the greenback lost momentum. At time of writing, the EUR/USD is trading at the 1.3675 zone, still 0.1% below its opening price.
EUR/USD perspective
Sharing her expertise, Valeria Bednarik, chief analyst at FXstreet.com noted that US data continues to improve, suggesting more tapering will come and therefore, more dollar strength. "But is still too early to make that call: if the 1.3620 Fibonacci support, the bearish acceleration may extend down to 1.3290, but will be only a break below this last, neckline of the possible double roof, that will suggest further midterm dollar strength", says Bednarik.
"As for the upside, the pair is now short term limited by 1.3700/20 area, albeit a price acceleration above 1.3831 year high is required to confirm an upward continuation towards 1.40 figure", the analyst added. "Still, any of it will likely happen this year".