23 Jul 2014
EUR/USD flat near 1.3470
FXStreet (Edinburgh) - The single currency remains almost unchanged vs. the greenback on Wednesday, with the EUR/USD hovering over 1.3465/70 so far.
EUR/USD focus on PMIs
Spot remains poised for further consolidation around multi-month lows, as there are neither data releases nor relevant events in Euroland and the US today. However, EUR traders remain cautious ahead of tomorrow’s advance readings of manufacturing and services PMIs for the month of July. Market consensus expects these key indicators to keep the neutral to negative bias, confirming the fragile and snail-pace of the economic recovery in the bloc. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “The fact that resistance has contained EUR rebounds rather serves to confirm the influence of the formation on spot’s direction we think. The double top at 1.3965 (and the break under the neckline trigger) targets a drop back to the upper 1.33s—our long-held target for a downside extension. Trend momentum is negative on the shorter-term (6-hour and daily) studies”.
EUR/USD levels to consider
At the moment the pair is flat at 1.3466 with the next resistance at 1.3530 (high Jul.22) ahead of 1.3549 (high Jul.21) and finally 1.3572 (high Jul.16). On the flip side, a breakdown of 1.3458 (2014 low Jul.23) would target 1.3436 (76.4% of 1.3295-1.3894) en route to 1.3399 (low Nov.21 2013).
EUR/USD focus on PMIs
Spot remains poised for further consolidation around multi-month lows, as there are neither data releases nor relevant events in Euroland and the US today. However, EUR traders remain cautious ahead of tomorrow’s advance readings of manufacturing and services PMIs for the month of July. Market consensus expects these key indicators to keep the neutral to negative bias, confirming the fragile and snail-pace of the economic recovery in the bloc. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “The fact that resistance has contained EUR rebounds rather serves to confirm the influence of the formation on spot’s direction we think. The double top at 1.3965 (and the break under the neckline trigger) targets a drop back to the upper 1.33s—our long-held target for a downside extension. Trend momentum is negative on the shorter-term (6-hour and daily) studies”.
EUR/USD levels to consider
At the moment the pair is flat at 1.3466 with the next resistance at 1.3530 (high Jul.22) ahead of 1.3549 (high Jul.21) and finally 1.3572 (high Jul.16). On the flip side, a breakdown of 1.3458 (2014 low Jul.23) would target 1.3436 (76.4% of 1.3295-1.3894) en route to 1.3399 (low Nov.21 2013).