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12 Sep 2013
EUR/USD challenging weekly highs
FXstreet.com (Edinburgh) -The bloc currency extends the recovery on Thursday, with the EUR/USD testing weekly peaks beyond 1.3320.
EUR/USD recovered from lows
Poor data from EMU’s industrial production sent the pair to test intraday lows in the proximities of 1.3260 during the European morning, picking pace afterwards as the buying pressure gathered steam. The FX Research team at TD Securities assessed, “softer European equities and wider peripheral Eurozone yield spreads point to a bit more risk aversion in the broader markets than is reflected in the FX spot rate. German-US short term spreads widened further overnight (in a EUR/USD-negative way), and are now at a point that would be more consistent with EUR/USD at 1.30 (according to the relationship over the past year)… Overall, we continue to see this recent bounce in EUR/USD as a selling opportunity”.
EUR/USD levels to watch
The pair is now flat at 1.3310 and a breakdown of 1.3230 (low Sep.10) would aim for 1.3222 (MA10d) and then 1.3157 (low Sep.9). On the upside, the initial hurdle aligns at 1.3325 (high Sep.11) followed by 1.3343 (high Aug.29) and then 1.3399 (high Aug.28).
EUR/USD recovered from lows
Poor data from EMU’s industrial production sent the pair to test intraday lows in the proximities of 1.3260 during the European morning, picking pace afterwards as the buying pressure gathered steam. The FX Research team at TD Securities assessed, “softer European equities and wider peripheral Eurozone yield spreads point to a bit more risk aversion in the broader markets than is reflected in the FX spot rate. German-US short term spreads widened further overnight (in a EUR/USD-negative way), and are now at a point that would be more consistent with EUR/USD at 1.30 (according to the relationship over the past year)… Overall, we continue to see this recent bounce in EUR/USD as a selling opportunity”.
EUR/USD levels to watch
The pair is now flat at 1.3310 and a breakdown of 1.3230 (low Sep.10) would aim for 1.3222 (MA10d) and then 1.3157 (low Sep.9). On the upside, the initial hurdle aligns at 1.3325 (high Sep.11) followed by 1.3343 (high Aug.29) and then 1.3399 (high Aug.28).