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19 May 2014
EUR/USD back from highs
FXStreet (Edinburgh) - After hitting fresh intraday highs beyond 1.3730, the EUR/USD is now deflating to the 1.3720/15 area on Monday.
EUR/USD keeps the bid tone
Despite a choppy session, spot is managing well to keep the trade above the 1.3700 handle, although it lacks conviction to climb further. Nothing of note in the data universe, with Construction Output in the bloc contracting 0.6% inter-month in March and the Spanish trade deficit widening to €2.05 billion in April. “The broader shape of recent price moves suggests to us that an important top/reversal is unfolding in EURUSD around the 1.40 zone as the rising wedge-like shape to the pattern of trade over the past year implies a rally that is losing momentum”, assessed Shaun Osborne, Chief FX Strategy at TD Securities.
EUR/USD relevant levels
At the moment the pair is up 0.16% at 1.3716 with the next resistance at 1.3732 (high May 15) followed by 1.3739 (100-d MA) and then 1.3771 (high May 13). On the flip side, a breakdown of 1.3685 (low May 16) would target 1.3648 (low May 15) and finally 1.3643 (low Feb.27).
EUR/USD keeps the bid tone
Despite a choppy session, spot is managing well to keep the trade above the 1.3700 handle, although it lacks conviction to climb further. Nothing of note in the data universe, with Construction Output in the bloc contracting 0.6% inter-month in March and the Spanish trade deficit widening to €2.05 billion in April. “The broader shape of recent price moves suggests to us that an important top/reversal is unfolding in EURUSD around the 1.40 zone as the rising wedge-like shape to the pattern of trade over the past year implies a rally that is losing momentum”, assessed Shaun Osborne, Chief FX Strategy at TD Securities.
EUR/USD relevant levels
At the moment the pair is up 0.16% at 1.3716 with the next resistance at 1.3732 (high May 15) followed by 1.3739 (100-d MA) and then 1.3771 (high May 13). On the flip side, a breakdown of 1.3685 (low May 16) would target 1.3648 (low May 15) and finally 1.3643 (low Feb.27).