Back
22 May 2014
EUR/USD testing lows near 1.3650
FXStreet (Edinburgh) - The selling mood around the EUR is not giving up, now dragging the EUR/USD to challenge fresh session lows in the mid-1.3600s.
EUR/USD focus on IFO
The pair largely ignored the mixed results from the advanced PMIs in the euro area and the US docket, extending the recent correction lower while intraday bullish attempts remain capped by 1.3680/85. Moving forward to tomorrow’s docket, the German GDP figures and the IFO indicator will be in the limelight in Euroland and New Home Sales will be the only release in the US. “Although it did not revisit yesterday's low of 1.3635 upon release, EURUSD does retain a heavy feel on the daily chart. However, we think further downside is somewhat limited in the coming days, as the market has already priced a June interest rate cut by the ECB and this weekend's European Parliamentary elections are unlikely to have a lasting dampening effect on the currency”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
As of writing the pair is losing 0.26% at 1.3650 with the next support at 1 1.3635 (low May 21) followed by 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).
EUR/USD focus on IFO
The pair largely ignored the mixed results from the advanced PMIs in the euro area and the US docket, extending the recent correction lower while intraday bullish attempts remain capped by 1.3680/85. Moving forward to tomorrow’s docket, the German GDP figures and the IFO indicator will be in the limelight in Euroland and New Home Sales will be the only release in the US. “Although it did not revisit yesterday's low of 1.3635 upon release, EURUSD does retain a heavy feel on the daily chart. However, we think further downside is somewhat limited in the coming days, as the market has already priced a June interest rate cut by the ECB and this weekend's European Parliamentary elections are unlikely to have a lasting dampening effect on the currency”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
As of writing the pair is losing 0.26% at 1.3650 with the next support at 1 1.3635 (low May 21) followed by 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).