Back
16 Aug 2013
EUR/USD a visit to 1.3400 is possible
FXstreet.com (Barcelona) - The bloc currency is extending the flat-lining patter exhibited since Thursday evening, with the EUR/USD gyrating around 1.3340/45.
EUR/USD eyes on US docket
A couple of releases will hold investors’ attention on Thursday in the US economy: Housing Starts and Building Permits, followed by the flash gauge of the Consumer Sentiment sponsored by Reuters/Michigan. Despite consensus pointing to a slight advance in both housing indicators, the recent poor performance from this sector allow traders not to rule out a soft result, adding selling pressure to the buck and boosting the pair to the next up barrier around 1.3400 the figure. Against the backdrop of the omnipresent Fed’s taper chatter, Strategist Greg Gibbs at RBS commented, “Whether the taper begins in September remains to be seen… The taper expectation has been less positive for the USD against other majors, than many may have expected. The low rate guidance of the Fed is working well to anchor front end yields in the US and prevent a rapid rise in the USD”.
EUR/USD levels to watch
The pair is now losing 0.03% at 1.3341 facing the immediate support at 1.3188 (low Aug.2) followed by 1.3179 (MA30d) and finally 1.3164 (low Jul.23). On the upside, a breakout of 1.3391 (high Aug.9) would open the door to 1.3401 (high Aug.8) and then 1.3417 (high Jun.19).
EUR/USD eyes on US docket
A couple of releases will hold investors’ attention on Thursday in the US economy: Housing Starts and Building Permits, followed by the flash gauge of the Consumer Sentiment sponsored by Reuters/Michigan. Despite consensus pointing to a slight advance in both housing indicators, the recent poor performance from this sector allow traders not to rule out a soft result, adding selling pressure to the buck and boosting the pair to the next up barrier around 1.3400 the figure. Against the backdrop of the omnipresent Fed’s taper chatter, Strategist Greg Gibbs at RBS commented, “Whether the taper begins in September remains to be seen… The taper expectation has been less positive for the USD against other majors, than many may have expected. The low rate guidance of the Fed is working well to anchor front end yields in the US and prevent a rapid rise in the USD”.
EUR/USD levels to watch
The pair is now losing 0.03% at 1.3341 facing the immediate support at 1.3188 (low Aug.2) followed by 1.3179 (MA30d) and finally 1.3164 (low Jul.23). On the upside, a breakout of 1.3391 (high Aug.9) would open the door to 1.3401 (high Aug.8) and then 1.3417 (high Jun.19).