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12 Aug 2013
EUR/USD intensifies its decline
FXstreet.com (Edinburgh) -After an unsuccessful attempt to leave today’s bottom, the EUR/USD is accelerating its bearish momentum and trading below the 1.3300 handle.
EUR/USD focus on EMU’s CPI, ZEW
Ahead in the week, only consumer prices in the euro area and the German ZEW Survey have the potential to affect the pair, with consensus signalling further recovery in the bloc and thus increasing the current resilience of the EUR. “As the Fed starts to taper its asset purchases this year, the ECB will be keen to stress the divergence in monetary policy across the Atlantic, in order to stop Eurozone bond yields following US yields higher. That is likely to push the euro back to the bottom of its current trading range to 1.28 against the dollar over the next three months”, suggested Mansoor Mohi-uddin, Director of FX Strategy at UBS.
EUR/USD relevant levels
As of writing the pair is losing 0.10% at 1.3306 and a breakdown of 1.3266 (low Aug.7) would open the door to 1.3246 (low Aug.6) and then 1.3233 (low Aug.5). On the upside, the initial resistance aligns at 1.3401 (high Aug.8) ahead of 1.3417 (high Jun.19) and finally 1.3456 (high Feb.14).
EUR/USD focus on EMU’s CPI, ZEW
Ahead in the week, only consumer prices in the euro area and the German ZEW Survey have the potential to affect the pair, with consensus signalling further recovery in the bloc and thus increasing the current resilience of the EUR. “As the Fed starts to taper its asset purchases this year, the ECB will be keen to stress the divergence in monetary policy across the Atlantic, in order to stop Eurozone bond yields following US yields higher. That is likely to push the euro back to the bottom of its current trading range to 1.28 against the dollar over the next three months”, suggested Mansoor Mohi-uddin, Director of FX Strategy at UBS.
EUR/USD relevant levels
As of writing the pair is losing 0.10% at 1.3306 and a breakdown of 1.3266 (low Aug.7) would open the door to 1.3246 (low Aug.6) and then 1.3233 (low Aug.5). On the upside, the initial resistance aligns at 1.3401 (high Aug.8) ahead of 1.3417 (high Jun.19) and finally 1.3456 (high Feb.14).