By Fast Brokers
The EUR/USD is consolidating above our 1st tier uptrend line, holding up relatively well considering the brisk selloff on Wall Street in reaction to disappointing U.S. economic data. The EUR/GBP continues its downturn with the GBP/USD looking to break out of our 2nd tier uptrend line. Hence, we’re witnessing the perpetuation of status quo among the Euro, Pound, and Dollar due to a lack of significant data from both the EU and Britain. The Euro is still at a disadvantage with the ECB taking a vague monetary stance, and uncertainty hardly ever yields a positive performance in price. Will the ECB cut its benchmark further or initiate unorthodox liquidity processes? Nobody knows at this point. Since the economic data surfacing from the EU over the past month has been mixed, the ECB will likely wait to see if the signs of improvement are only a bounce or a real turn in events. We’ll witness a couple inflection points shortly, including our 1st tier uptrend and downtrend lines and our 2nd tier uptrend and downtrend lines. Therefore, the EUR/USD is signaling that it could reach a directional pivot point soon. Meanwhile, we could see a little pop up to our 1st tier downtrend line intraday. Fundamentally, we maintain our supports of 1.3271, 1.3223, 1.3192, 1.3162, and 1.3126. To the topside, we hold our resistances of 1.3323, 1.3351, 1.3375, 1.3413, and1.3462. The 1.35 area acts a psychological barrier again with 1.30 serving as a key psychological cushion. The EUR/USD is currently exchanging at 1.3268.
Market Commentary provided by Fast Brokers.
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