By Fast Brokers – The EUR/USD is climbing on tepid volume despite light EU econ data as we enter another holiday-shortened week. Regardless, the EUR/USD is recording solid gains today and we notice a sizable pop in the AUD/USD as well. However, the Cable is declining, resulting in a strong upward movement in the EUR/GBP. It’s unclear exactly what is giving the Euro its relative strength over the Pound, yet topside participation in the AUD/USD indicates investors may be reacting to a negative development in the UK. That being said, investors will receive some key HPI and CB Consumer Confidence data from the U.S. Should U.S. data continue last week’s weak performance, then the EUR/USD may log further gains as the Dollar’s rally unwinds. Meanwhile, the EU will release Germany’s Prelim CPI today followed by tomorrow’s M3 Money Supply. However, reaction to these data points may be limited as investors enjoy the holidays.
Technically speaking, the EUR/USD faces multiple downtrend lines along with the psychological 1.45 level and 12/16 highs. Hence, some challenging near-term topside technicals are in place due to the EUR/USD recent deterioration. As for the downside, the EUR/USD has technical cushions in the form of our two uptrend lines along with intraday and 12/22 lows.
Present Price: 1.4433
Resistances: 1.4467, 1.4495, 1.4519, 1.4543, 1.4560, 1.4581
Supports: 1.4408, 1.4372, 1.4348, 1.4322, 1.4298, 1.4266
Psychological: 1.45, 1.40, December and September Lows
Market Commentary provided by Fast Brokers.
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