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16 May 2014
EUR/USD back to lows around 1.3690
FXStreet (Edinburgh) -The single currency is now losing the grip, dragging the EUR/USD back to test yesterday’s troughs in the 1.3690/85 region.
EUR/USD down from 1.3730
The pair is prolonging its correction from intraday peaks near 1.3730, breaking below the overnight consolidation pattern and losing the 1.3700 handle at the same time. Data wise, the EMU registered a wider trade balance in March, reaching €17.1 billion vs. €13.6 billion in the previous month. Across the pond, US Building Permits (1.01 M exp.) , Housing Starts (0.980 M exp.) and the Reuters/Michigan index (84.5 exp.) will grab all the looks. Jane Foley, Senior Currency Strategist at Rabobank, assessed “the recent softer tone in peripheral stocks and bonds suggests that the rallies in these assets has become tired and this could be pre-empt a less robust tone for the EUR in the week ahead. For now we remain of the view that the EUR/USD 1.37 to 1.39 is likely to contain most activity in the weeks ahead. We forecast a return to the 1.35/34 area by year end, though this assumes a broad-based improvement in the tone of the USD”.
EUR/USD levels to watch
At the moment the pair is down 0.12% at 1.3693 with the next support at 1.3648 (low May 15) ahead of 1.3643 (low Feb.27) and finally 1.3625 (50% of 1.3477-1.3773). On the flip side, a break above 1.3732 (high May 15) would target 1.3741 (100-d MA) en route to 1.3771 (high May 13).
EUR/USD down from 1.3730
The pair is prolonging its correction from intraday peaks near 1.3730, breaking below the overnight consolidation pattern and losing the 1.3700 handle at the same time. Data wise, the EMU registered a wider trade balance in March, reaching €17.1 billion vs. €13.6 billion in the previous month. Across the pond, US Building Permits (1.01 M exp.) , Housing Starts (0.980 M exp.) and the Reuters/Michigan index (84.5 exp.) will grab all the looks. Jane Foley, Senior Currency Strategist at Rabobank, assessed “the recent softer tone in peripheral stocks and bonds suggests that the rallies in these assets has become tired and this could be pre-empt a less robust tone for the EUR in the week ahead. For now we remain of the view that the EUR/USD 1.37 to 1.39 is likely to contain most activity in the weeks ahead. We forecast a return to the 1.35/34 area by year end, though this assumes a broad-based improvement in the tone of the USD”.
EUR/USD levels to watch
At the moment the pair is down 0.12% at 1.3693 with the next support at 1.3648 (low May 15) ahead of 1.3643 (low Feb.27) and finally 1.3625 (50% of 1.3477-1.3773). On the flip side, a break above 1.3732 (high May 15) would target 1.3741 (100-d MA) en route to 1.3771 (high May 13).