30 Jan 2014
EUR/USD humiliated around 1.3550
FXstreet.com (Edinburgh) - The shared currency receded over a big-figure on Thursday, dragging the EUR/USD to attempt a consolidation pattern around 1.3550.
EUR/USD weaker on US data
The US economy expanded at an annual pace of 3.2% during the fourth quarter of 2013, in line with market expectations and giving extra oxygen to the ongoing USD rally; Pending Home Sales and the weekly report on the labour market came in short of estimates although the result was largely eclipsed by the GDP numbers. Better than expected releases from the German unemployment rate/change were not enough to prop up the pair, succumbing to the selling pressure soon after. “The broader picture continues to be one where EUR is stuck trading within a fairly comfortable two-month 385-ppoint range of 1.3508 to 1.3893 (we remain EUR bears, targeting a year-end close at 1.25”, concluded Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
The pair is now retreating 0.76% at 1.3552 and a breakdown of 1.3530 (low Jan.23) would target 1.3517 (low Jan.21) en route to 1.3508 (2014 low Jan.20). On the upside, the immediate hurdle lines up at 1.3666 (high Jan.30) followed by 1.3685 (high Jan.29) and then 1.3689 (high Jan.28).
EUR/USD weaker on US data
The US economy expanded at an annual pace of 3.2% during the fourth quarter of 2013, in line with market expectations and giving extra oxygen to the ongoing USD rally; Pending Home Sales and the weekly report on the labour market came in short of estimates although the result was largely eclipsed by the GDP numbers. Better than expected releases from the German unemployment rate/change were not enough to prop up the pair, succumbing to the selling pressure soon after. “The broader picture continues to be one where EUR is stuck trading within a fairly comfortable two-month 385-ppoint range of 1.3508 to 1.3893 (we remain EUR bears, targeting a year-end close at 1.25”, concluded Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
The pair is now retreating 0.76% at 1.3552 and a breakdown of 1.3530 (low Jan.23) would target 1.3517 (low Jan.21) en route to 1.3508 (2014 low Jan.20). On the upside, the immediate hurdle lines up at 1.3666 (high Jan.30) followed by 1.3685 (high Jan.29) and then 1.3689 (high Jan.28).