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23 Sep 2013
EUR/USD attempts a test of 1.3500
FXstreet.com (Edinburgh) -The selling interest is now dragging the EUR/USD to challenge the critical support at 1.3500 on Monday, as poor PMI results keep weighing on sentiment.
EUR/USD focus on Draghi
The next risk event for the shared currency will be the speech by ECB’s Mario Draghi, due at 1300GMT. In light of the recent tone exhibited by Draghi and the steep ascent of the pair, market participants could well be expecting some sort of dovish bias, adding to the downbeat mood surrounding the pair today. According to Westpac Global Strategy Group, “Dips in EUR are thus likely to be shallow, with the 2013 highs of 1.3712 not out of the question though our multi-week/month bias remains to sell this rally on likely divergent growth and yield momentum”.
EUR/USD relevant levels
At the moment of writing the pair is retreating 0.08% at 1.3514 and a breakdown of 1.3498 (low Sep.20) would aim for 1.3453 (high Aug.20) and finally 1.3399 (high Aug.28). On the upside, the initial hurdle remains at 1.3569 (high Sep.19) followed by 1.3598 (high Feb,5) and then 1.3660 (high Feb.4).
EUR/USD focus on Draghi
The next risk event for the shared currency will be the speech by ECB’s Mario Draghi, due at 1300GMT. In light of the recent tone exhibited by Draghi and the steep ascent of the pair, market participants could well be expecting some sort of dovish bias, adding to the downbeat mood surrounding the pair today. According to Westpac Global Strategy Group, “Dips in EUR are thus likely to be shallow, with the 2013 highs of 1.3712 not out of the question though our multi-week/month bias remains to sell this rally on likely divergent growth and yield momentum”.
EUR/USD relevant levels
At the moment of writing the pair is retreating 0.08% at 1.3514 and a breakdown of 1.3498 (low Sep.20) would aim for 1.3453 (high Aug.20) and finally 1.3399 (high Aug.28). On the upside, the initial hurdle remains at 1.3569 (high Sep.19) followed by 1.3598 (high Feb,5) and then 1.3660 (high Feb.4).