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10 Sep 2013
EUR/USD bounces off 1.3230
FXstreet.com (Edinburgh) -After bottoming out near 1.3230, the EUR/USD is now picking up pace and recovering some pips to the 1.3245/50 region.
EUR/USD bolstered by risk, hurt by Italy
More rumours regarding Italian PdL leader Silvio Berlusconi could withdraw his support from the Government led by E.Letta have done the rounds during the European morning, offsetting some effects of the prevailing risk-on trade and dragging the pair to fresh lows near 1.3230. “As a consequence of the EUR’s more resilient tone, we expect that the EUR will not give up ground easily to EUR/USD in the coming months, and that without signs of accelerating growth in the US that EUR/USD could remain close to current levels. Overall, the lack of strength in the August US payrolls report makes is more likely that EUR/USD could reach year end without a convincing break of EUR/USD130.00”, noted Jane Foley, Strategist at Rabobank.
EUR/USD levels to watch
As of writing the pair is losing 0.07% at 1.3247 with the next support at 1.3217 (MA10d) ahead of 1.3157 (low Sep.9) and finally 1.3104 (50% of 1.2755-1.3453). On the upside, a break above 1.3281 (high Sep.9) would aim for 1.3289 (MA30d) and then 1.3298 (low Aug.22).
EUR/USD bolstered by risk, hurt by Italy
More rumours regarding Italian PdL leader Silvio Berlusconi could withdraw his support from the Government led by E.Letta have done the rounds during the European morning, offsetting some effects of the prevailing risk-on trade and dragging the pair to fresh lows near 1.3230. “As a consequence of the EUR’s more resilient tone, we expect that the EUR will not give up ground easily to EUR/USD in the coming months, and that without signs of accelerating growth in the US that EUR/USD could remain close to current levels. Overall, the lack of strength in the August US payrolls report makes is more likely that EUR/USD could reach year end without a convincing break of EUR/USD130.00”, noted Jane Foley, Strategist at Rabobank.
EUR/USD levels to watch
As of writing the pair is losing 0.07% at 1.3247 with the next support at 1.3217 (MA10d) ahead of 1.3157 (low Sep.9) and finally 1.3104 (50% of 1.2755-1.3453). On the upside, a break above 1.3281 (high Sep.9) would aim for 1.3289 (MA30d) and then 1.3298 (low Aug.22).