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19 Aug 2013
EUR/USD enters the week on up note but technically vulnerable
FXstreet.com (Barcelona) - The EUR/USD rallied hard Thursday and managed to hold onto most of those gains Friday. Technicians warn that a big fall could be in the cards, though.
A slow start in data picks up steam throughout the week for EUR/USD
After last week’s end-of-week strength in EUR/USD – which resulted from some short-term Dollar weakness (despite continued strength in Treasury yields) – traders will have to wait a few days to get any major guidance from the data flow. Here is the schedule of noteworthy economic data from Europe and the US this week:
• Monday: Spanish 10-Year Auction
• Tuesday: German PPI; US Chicago Fed National Activity Index
• Wednesday: US Existing Home Sales; US FOMC Policy Meeting Minutes
• Thursday: US Jackson Hole, WY Symposium; German PMI; EuroZone PMI; US Weekly Jobless Claims; US Manufacturing PMI; US Housing Prices Index; US Leading Indicators; Kansas City Fed Manufacturing Activity Survey; US Treasury Secretary Lew speech
• Friday: Jackson Hole, WY Symposium; German GDP; German Import Prices; EuroZone Consumer Confidence; US New Home Sales
Technical outlook for EUR/USD
The EUR/USD had worked significantly lower recently after peaking out at just under 1.3414 recently. But, Thursday’s rebound shows that it may take one more test of resistance to lock in that top. However, prior to any potential test of 1.3414, there will be short-term resistance at the 1.3354 level – which represents a very short-term “correction resistance” level. Critical support for the bulls comes in at the 1.3187 level – although Thursday’s low of 1.3205 remains very short-term support. A cross below 1.3187 will confirm that a top has been made and that a move down to the 1.2400 – 1.2500 range is under way.
A slow start in data picks up steam throughout the week for EUR/USD
After last week’s end-of-week strength in EUR/USD – which resulted from some short-term Dollar weakness (despite continued strength in Treasury yields) – traders will have to wait a few days to get any major guidance from the data flow. Here is the schedule of noteworthy economic data from Europe and the US this week:
• Monday: Spanish 10-Year Auction
• Tuesday: German PPI; US Chicago Fed National Activity Index
• Wednesday: US Existing Home Sales; US FOMC Policy Meeting Minutes
• Thursday: US Jackson Hole, WY Symposium; German PMI; EuroZone PMI; US Weekly Jobless Claims; US Manufacturing PMI; US Housing Prices Index; US Leading Indicators; Kansas City Fed Manufacturing Activity Survey; US Treasury Secretary Lew speech
• Friday: Jackson Hole, WY Symposium; German GDP; German Import Prices; EuroZone Consumer Confidence; US New Home Sales
Technical outlook for EUR/USD
The EUR/USD had worked significantly lower recently after peaking out at just under 1.3414 recently. But, Thursday’s rebound shows that it may take one more test of resistance to lock in that top. However, prior to any potential test of 1.3414, there will be short-term resistance at the 1.3354 level – which represents a very short-term “correction resistance” level. Critical support for the bulls comes in at the 1.3187 level – although Thursday’s low of 1.3205 remains very short-term support. A cross below 1.3187 will confirm that a top has been made and that a move down to the 1.2400 – 1.2500 range is under way.