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23 Aug 2013
EUR/USD consolidating gains above 1.3380 zone
FXstreet.com (Chicago) - EUR/USD accumulates 0.44% weekly gains, 0.23% pocketed today. The bulls pressed the pair higher after the release of European and US data earlier today. After reaching 1.341 highs, 2-month peaks, the pair retraced to find grounds around 1.3380 zone.
Signs of economic recovery?
GDP data in Germany matched expectations at 0.7% (QoQ) for the second quarter of the year. The consumer confidence index was -15.6 vs. expected -16.5, triggering heavy buying among market participants. On the other hand, housing market data in the US failed to meet estimates as new home sales dropped to 0.394M vs. expectations at 0.485M. In Europe, the CAC40 closed with gains at 0.25% along the DA up 0.23%. The Euronext 100 marked 0.32%. Rumors of unnecessary rate cut upon remarks by ECB’s Noyotny if data continues to demonstrate economic recovery, contributed to the euro’s bullish momentum as the price spiked against major currency pairs at the opening of the Asian trading session.
EUR/USD Technical Levels
Technically speaking, the pair trades at 1.3385 between supports at 1.3379 (August 16th highs), 1.3372 (August 22nd highs) ahead of 1.3362 (August 15th highs) and resistances at 1.3389 (August 9th highs), 1.3400 (August 19th highs) followed by 1.3414 (June 20th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20 with a MACD indicator pointing up.
Signs of economic recovery?
GDP data in Germany matched expectations at 0.7% (QoQ) for the second quarter of the year. The consumer confidence index was -15.6 vs. expected -16.5, triggering heavy buying among market participants. On the other hand, housing market data in the US failed to meet estimates as new home sales dropped to 0.394M vs. expectations at 0.485M. In Europe, the CAC40 closed with gains at 0.25% along the DA up 0.23%. The Euronext 100 marked 0.32%. Rumors of unnecessary rate cut upon remarks by ECB’s Noyotny if data continues to demonstrate economic recovery, contributed to the euro’s bullish momentum as the price spiked against major currency pairs at the opening of the Asian trading session.
EUR/USD Technical Levels
Technically speaking, the pair trades at 1.3385 between supports at 1.3379 (August 16th highs), 1.3372 (August 22nd highs) ahead of 1.3362 (August 15th highs) and resistances at 1.3389 (August 9th highs), 1.3400 (August 19th highs) followed by 1.3414 (June 20th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20 with a MACD indicator pointing up.