Back
29 Aug 2013
EUR/USD rallied on Syrian news and bad US data, but still vulnerable
FXstreet.com (Barcelona) - The EUR/USD bottomed out Wednesday just before US home sales data at 1.3304 and is now hovering below “correction resistance” at 1.3351.
German and then U.S. data will divert some attention from Syria
The EUR/USD trading crowd has been inching towards favoring European strength versus US strength – but not convincingly so. Normally, the cross would have sold off sharply on Syrian turmoil (like the AUD/USD and AUD/JPY did), but the growing crowd of Europe bulls is apparently buoying the EUR/USD. Weak US housing data may have also contributed to the EUR/USD’s strength.
Thursday, traders will be eyeing German unemployment and inflation data, Spanish GDP, US GDP, Personal Consumption Expenditures, US Weekly Jobless Claims and a speech from the U.S. Fed’s Bullard. All of that data could be market-moving, but any major Syrian headlines will overshadow the influences of the data points.
Technical outlook for EUR/USD
Technicians say 1.3409 remains the key upside correction resistance level to monitor on a macro basis, but 1.3352 is the key level to watch in the very near term for EUR/USD. Those who say EUR/USD topped at around 1.34 – 1.35 have as their downside target 1.24 – 1.25. Shorter-term support comes into play at Wednesday’s low at 1.3304.
German and then U.S. data will divert some attention from Syria
The EUR/USD trading crowd has been inching towards favoring European strength versus US strength – but not convincingly so. Normally, the cross would have sold off sharply on Syrian turmoil (like the AUD/USD and AUD/JPY did), but the growing crowd of Europe bulls is apparently buoying the EUR/USD. Weak US housing data may have also contributed to the EUR/USD’s strength.
Thursday, traders will be eyeing German unemployment and inflation data, Spanish GDP, US GDP, Personal Consumption Expenditures, US Weekly Jobless Claims and a speech from the U.S. Fed’s Bullard. All of that data could be market-moving, but any major Syrian headlines will overshadow the influences of the data points.
Technical outlook for EUR/USD
Technicians say 1.3409 remains the key upside correction resistance level to monitor on a macro basis, but 1.3352 is the key level to watch in the very near term for EUR/USD. Those who say EUR/USD topped at around 1.34 – 1.35 have as their downside target 1.24 – 1.25. Shorter-term support comes into play at Wednesday’s low at 1.3304.