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21 Oct 2013
EUR/USD stabilizes around 1.3670
FXstreet.com (Edinburgh) -The shared currency keeps the intraday range on Monday, with the EUR/USD meandering around 1.2665 and 1.3685 so far.
EUR/USD looks to US docket
The irrelevant docket in the euro area prompts investors to wait for today’s US releases in order to define a clearer trend in the pair, as markets remain biased towards profit taking. With the recent shutdown and debt ceiling debate now in the rear mirror view, the timing of the Fed’s QE tapering is back to the headlines, emphasizing the results from the US economy. Ahead in the day, Existing Home Sales are due, with prior surveys expecting a monthly contraction of 1.6% during September, down from August’s 1.7% gain. “In a day-to-day perspective, it is too early to row against the dollar negative tide and some weak US eco data might provide a perfect excuse to test the EUR/USD 1.3711 2013 top… We expect the ECB to avoid a break of the 1.40 level with talk or if needed action. In a longer term perspective, we still look to sell EUR/USD in the 1.3711 to 1.40 area, but are not in a hurry to rush in”, suggested the research team at KBC Bank.
EUR/USD levels to watch
The pair is now retreating 0.10% at 1.3673 with the immediate support at 1.3660 (low Oct.8) ahead of 1.3573 (MA10d) and then 1.3516 (low Oct.17). On the flip side, a breakout of 1.3711 (2013 high Feb.1) would open the door to the psychological level at 1.3800 and then 1.3815 (high Nov.14 2011).
EUR/USD looks to US docket
The irrelevant docket in the euro area prompts investors to wait for today’s US releases in order to define a clearer trend in the pair, as markets remain biased towards profit taking. With the recent shutdown and debt ceiling debate now in the rear mirror view, the timing of the Fed’s QE tapering is back to the headlines, emphasizing the results from the US economy. Ahead in the day, Existing Home Sales are due, with prior surveys expecting a monthly contraction of 1.6% during September, down from August’s 1.7% gain. “In a day-to-day perspective, it is too early to row against the dollar negative tide and some weak US eco data might provide a perfect excuse to test the EUR/USD 1.3711 2013 top… We expect the ECB to avoid a break of the 1.40 level with talk or if needed action. In a longer term perspective, we still look to sell EUR/USD in the 1.3711 to 1.40 area, but are not in a hurry to rush in”, suggested the research team at KBC Bank.
EUR/USD levels to watch
The pair is now retreating 0.10% at 1.3673 with the immediate support at 1.3660 (low Oct.8) ahead of 1.3573 (MA10d) and then 1.3516 (low Oct.17). On the flip side, a breakout of 1.3711 (2013 high Feb.1) would open the door to the psychological level at 1.3800 and then 1.3815 (high Nov.14 2011).