Today, the United European Currency tested week high of 1.3280. However, the pair was not strong enough for further upward movement thus it came back to lows.
With the beginning of European trading session the downward pressure on the pair intensified. As a result, the EUR/USD fell below 1.3250. As for fundamental data for today, the Consumer Price Index in Germany in August was in line with analysts’ expectations (1.5% y/y and 0.0% m/m). As a result, the publication did not have any impact on EUR/USD. Due to the lack of significant news from American market, the pair is completely depending on the mercy of risky trends. After Barack Obama’s decision to postpone the military response to the Syrian government the situation around Syria is again in the spotlight.
Key Technical levels for EUR/USD:
According to Karen Jones, Head of Technical Analysis at Commerzbank, the pair “bounce off the 50% retracement of the July-to August rally at 1.3104 has so far taken it to 1.3281 where the 50% retracement of the August-to-September decline can be seen. The 1.3300 region could also be reached but around it another down leg should be made”.
Strategist Emmanuel Ng at OCBC Bank also mentioned, “Despite background Italian political uncertainty, the EURUSD edged higher in line with the majors on Tuesday and the pair may look towards 1.3300 and then 1.3315 if the broad dollar remains on the defensive. Downside support is expected towards the 55-day MA (1.3198)”.
Written by http://www.forexcamping.com
