11 Jul 2013
EUR/USD consolidates above 1.3100
FXstreet.com (Barcelona) -The EUR/USD has been propelled from the mid 1.28s on Wednesday to just above 1.32 post-Bernanke speech last night, correcting lower then to the current area of 1.3115/20.
EUR/USD firmer on Bernanke
The FOMC minutes first and Bernanke later abruptly interrupted the USD rally, pushing the pair to fresh 3-week high after flirting with ytd lows around 1.2750 on Tuesday. According to Sebastien Galy, Strategist at Societe Generale, “ Its mostly a case of squeezing positions which had built up, rather than anything more fundamental about the Fed stance. Overall the reactions of the market are fairly intense to small Fed nuances, an indication of some fundamental instability or great uncertainty in the market. Helicopter Ben is generally good for equities and bad for the USD, so we have a good idea of the short-term reaction until we hit another bout of very decent US data”.
EUR/USD key levels
At the moment the pair is up 1.10% at 1.3121 with the next resistance at 1.3208 (overnight high) followed by 1.3370 (resistance downtrend line) and then 1.3404 (high Jan.14). On the flip side a breakdown of 1.2811 (hourly support July.11) would expose 1.2755 (low Jul.9) and finally 1.2740 (2013 low Apr.4).
EUR/USD firmer on Bernanke
The FOMC minutes first and Bernanke later abruptly interrupted the USD rally, pushing the pair to fresh 3-week high after flirting with ytd lows around 1.2750 on Tuesday. According to Sebastien Galy, Strategist at Societe Generale, “ Its mostly a case of squeezing positions which had built up, rather than anything more fundamental about the Fed stance. Overall the reactions of the market are fairly intense to small Fed nuances, an indication of some fundamental instability or great uncertainty in the market. Helicopter Ben is generally good for equities and bad for the USD, so we have a good idea of the short-term reaction until we hit another bout of very decent US data”.
EUR/USD key levels
At the moment the pair is up 1.10% at 1.3121 with the next resistance at 1.3208 (overnight high) followed by 1.3370 (resistance downtrend line) and then 1.3404 (high Jan.14). On the flip side a breakdown of 1.2811 (hourly support July.11) would expose 1.2755 (low Jul.9) and finally 1.2740 (2013 low Apr.4).