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18 Oct 2013
EUR/USD sustains 9-month peaks forging grounds at 1.3660 – above EMA20
FXstreet.com (Chicago) - EUR/USD continues trading above the EMA20 after rally consolidation around 9-month highs ahead of a light Friday in regards to data releases for both regions.
Perspectives
According to Jim Langlands from FXcharts “the dollar moved sharply lower today as the markets perceived that despite the US Government passing the bill to lift the debt ceiling, the economic impact of the recent shutdown would keep the Fed from scaling back its stimulus program and that tapering will not now begin until 2014, with President Obama today acknowledging the damage that has been done to the economy. None of this seemed to do too much damage to the equities markets, with the S+P reaching an all time high. The possibility of another debt crisis also came into focus, as the temporary solution to the budget issues does not resolve the longer term problems dividing Republicans and Democrats and as we move forwards, is likely to keep the dollar under pressure.”
EUR/USD Technical Levels
Price action reveals a strong rally on dollar’s sell-off Thursday, after market participants seem to be adjusting perception in regards to Fed’s tapering and the US shutdown economic costs. Capped at 1.3680, 9-month highs, the pair is offered at 1.3665 and oscillates between supports aligned at 1.3631 (October 4th highs), 1.3564 (October 16th highs) ahead of 1.3473 (October 16th lows) and the resistances set at 1.3680 (October 17th highs), 1.3716 (January 30th highs) followed by 1.3791 (October 8th 2011 highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis above the EMA20.
Perspectives
According to Jim Langlands from FXcharts “the dollar moved sharply lower today as the markets perceived that despite the US Government passing the bill to lift the debt ceiling, the economic impact of the recent shutdown would keep the Fed from scaling back its stimulus program and that tapering will not now begin until 2014, with President Obama today acknowledging the damage that has been done to the economy. None of this seemed to do too much damage to the equities markets, with the S+P reaching an all time high. The possibility of another debt crisis also came into focus, as the temporary solution to the budget issues does not resolve the longer term problems dividing Republicans and Democrats and as we move forwards, is likely to keep the dollar under pressure.”
EUR/USD Technical Levels
Price action reveals a strong rally on dollar’s sell-off Thursday, after market participants seem to be adjusting perception in regards to Fed’s tapering and the US shutdown economic costs. Capped at 1.3680, 9-month highs, the pair is offered at 1.3665 and oscillates between supports aligned at 1.3631 (October 4th highs), 1.3564 (October 16th highs) ahead of 1.3473 (October 16th lows) and the resistances set at 1.3680 (October 17th highs), 1.3716 (January 30th highs) followed by 1.3791 (October 8th 2011 highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis above the EMA20.