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16 Aug 2013
EUR/USD pointed higher to 1.3500 as momentum builds
FXstreet.com (Lisbon) - The EUR/USD foreign exchange rate surged to fresh highs Friday, as the EUR extended its run against the USD, which once again saw a general retreat across the board during US trading.
In the United States, Housing Starts (MoM) were reported at 0.896M in July, missing estimates of 0.900M. Moreover, Building Permits (MoM) came in at 0.943M, against expectations of 0.945M.
EUR/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “Yesterday, the EUR/USD reached the 1.3208/1.3188 support zone (July 11 high and the current August low) from where it accelerated higher. The August high at 1.3401 is thus back into the picture. A rise above the 1.3420 level would suggest ongoing strength to 1.3500/20, the minor psychological level and 13th February high. This is regarded as the last defense for the 1.3711 February high. We do not favor such a strong rise, though. Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure.”
EUR/USD technical levels
Despite already recording steadfast gains, the EUR/USD managed to move higher and establish new highs at 1.3377 in these moments, en route to as sizable modest of +0.23% above its opening Friday. In terms of the technical levels, the EUR/USD broke resistance at 1.3363, and will look to test additional means of correction at 1.3391, and 1.3417, notes the Danske Research Team.
In the United States, Housing Starts (MoM) were reported at 0.896M in July, missing estimates of 0.900M. Moreover, Building Permits (MoM) came in at 0.943M, against expectations of 0.945M.
EUR/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “Yesterday, the EUR/USD reached the 1.3208/1.3188 support zone (July 11 high and the current August low) from where it accelerated higher. The August high at 1.3401 is thus back into the picture. A rise above the 1.3420 level would suggest ongoing strength to 1.3500/20, the minor psychological level and 13th February high. This is regarded as the last defense for the 1.3711 February high. We do not favor such a strong rise, though. Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure.”
EUR/USD technical levels
Despite already recording steadfast gains, the EUR/USD managed to move higher and establish new highs at 1.3377 in these moments, en route to as sizable modest of +0.23% above its opening Friday. In terms of the technical levels, the EUR/USD broke resistance at 1.3363, and will look to test additional means of correction at 1.3391, and 1.3417, notes the Danske Research Team.