24 Jul 2014
EUR/USD bid above 1.3470
FXStreet (Edinburgh) - The single currency keeps its buoyancy intact on Thursday, with the EUR/USD trading in a firm tone above 1.3480.
EUR/USD looks to regain 1.3500?
Spot is on a firmer footing after advanced manufacturing and services PMIs in Euroland surprised investors to the upside for the month of July, allowing the EUR to leave behind fresh 8-month lows in sub-1.3440 levels. Next of relevance will be the weekly report on the US labour market followed by the manufacturing PMI gauged by Markit and New Home Sales. Shaun Osborne, Chief FX Strategist at TD Securities, assessed, “we believe EUR remains vulnerable to an extension of the downward trend it has been showing since ECB President Draghi capped it around 1.3950 with his "increasingly important" remarks. A week close below 1.35 would leave the cross liable to a run lower testing the high 1.33s. Only a string of positive data surprises could halt this trend”.
EUR/USD levels to consider
The pair is now up 0.07% at 1.13473 with the initial barrier at 1.3530 (high Jul.22) ahead of 1.3549 (high Jul.21) and finally 1.3572 (high Jul.16). On the flip side, a breakdown of 1.3438 (2014 low Jul.24) would open the door to 1.3436 (76.4% of 1.3295-1.3894) and then 1.3399 (low Nov.21 2013).
EUR/USD looks to regain 1.3500?
Spot is on a firmer footing after advanced manufacturing and services PMIs in Euroland surprised investors to the upside for the month of July, allowing the EUR to leave behind fresh 8-month lows in sub-1.3440 levels. Next of relevance will be the weekly report on the US labour market followed by the manufacturing PMI gauged by Markit and New Home Sales. Shaun Osborne, Chief FX Strategist at TD Securities, assessed, “we believe EUR remains vulnerable to an extension of the downward trend it has been showing since ECB President Draghi capped it around 1.3950 with his "increasingly important" remarks. A week close below 1.35 would leave the cross liable to a run lower testing the high 1.33s. Only a string of positive data surprises could halt this trend”.
EUR/USD levels to consider
The pair is now up 0.07% at 1.13473 with the initial barrier at 1.3530 (high Jul.22) ahead of 1.3549 (high Jul.21) and finally 1.3572 (high Jul.16). On the flip side, a breakdown of 1.3438 (2014 low Jul.24) would open the door to 1.3436 (76.4% of 1.3295-1.3894) and then 1.3399 (low Nov.21 2013).