30 Jun 2014
EUR/USD in highs above 1.3650
FXStreet (Edinburgh) -The single currency is posting meager gains at the beginning of the week, although enough to lift the EUR/USD to 2-week highs beyond 1.3650.
EUR/USD regains 1.3650
The pair left behind last week’s highs around the mid-1.3600s despite German Retail Sales disappointed investors in May, contracting 0.6% on a monthly basis and expanding at an annual pace of 1.9% vs. forecasts for a 0.7% and 2.1%, respectively. Ahead in the day, EMU’s M3 Money Supply and Private Loans are due ahead of the critical preliminary inflation figures for the month of June (0.6% YoY exp.). “. Near term, market may adhere to a buy-dips posture for the pair but expect limited elevation ahead of the ECB meeting later this week. On the CFTC front, note that leveraged EUR shorts were also pared in the latest week. Beyond 1.3650, expect the 200-day MA (1.3674) and the 55-day MA (1.3701) to cap while 1.3600 may present a near term floor”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
EUR/USD levels to watch
As of writing the pair is flat at 1.3649 with the next resistance at 1.3669 (high Jun.9) followed by 1.3700 (psychological level). On the downside, a breach of 1.3565 (low Jun.20) would open the door to 1.3542 (low Jun.18) and then 1.3536 (low Jun.17).
EUR/USD regains 1.3650
The pair left behind last week’s highs around the mid-1.3600s despite German Retail Sales disappointed investors in May, contracting 0.6% on a monthly basis and expanding at an annual pace of 1.9% vs. forecasts for a 0.7% and 2.1%, respectively. Ahead in the day, EMU’s M3 Money Supply and Private Loans are due ahead of the critical preliminary inflation figures for the month of June (0.6% YoY exp.). “. Near term, market may adhere to a buy-dips posture for the pair but expect limited elevation ahead of the ECB meeting later this week. On the CFTC front, note that leveraged EUR shorts were also pared in the latest week. Beyond 1.3650, expect the 200-day MA (1.3674) and the 55-day MA (1.3701) to cap while 1.3600 may present a near term floor”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
EUR/USD levels to watch
As of writing the pair is flat at 1.3649 with the next resistance at 1.3669 (high Jun.9) followed by 1.3700 (psychological level). On the downside, a breach of 1.3565 (low Jun.20) would open the door to 1.3542 (low Jun.18) and then 1.3536 (low Jun.17).