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2 Aug 2013
EUR/USD slammed by steady ECB and better US data. More to come?
FXstreet.com (Barcelona) - The EUR/USD reversed course hard to the downside late Wednesday in the US and has not looked back since – thanks primarily to stronger-than-expected US data.
Wednesday and Thursday’s news flow netted out in favor of the greenback
A “steady as she goes” ECB and suddenly better economic data in the US has weighed on the EUR/USD since Wednesday’s peak. The ECB left interest rates unchanged early Thursday and cited the need to continue to try to grease the skids for the European economy. Then, later in the day, traders saw better jobless claims data and a better ISM Manufacturing PMI number which combined to stoke the Dollar higher and press the EUR/USD lower.
Technical outlook for EUR/USD
The EUR/USD came into the last 36 hours very overbought short-term and due for a correction. Well, the selling that commenced at the end of the US session Wednesday has served to eradicate that overbought situation. Now, technicians are scrambling to determine where the correction may stop. The consensus seems to be favoring a little more downside for the EUR/USD before the recent uptrend resumes. With EUR/USD currently at 1.3214, short-term support comes in at Thursday’s low of 1.3193 and is backed up by “correction support” at 1.3123. Very short-term resistance comes in at Thursday’s intra-day pivot at 1.3266 and is followed on the upside by Wednesday’s high of 1.3344.
Wednesday and Thursday’s news flow netted out in favor of the greenback
A “steady as she goes” ECB and suddenly better economic data in the US has weighed on the EUR/USD since Wednesday’s peak. The ECB left interest rates unchanged early Thursday and cited the need to continue to try to grease the skids for the European economy. Then, later in the day, traders saw better jobless claims data and a better ISM Manufacturing PMI number which combined to stoke the Dollar higher and press the EUR/USD lower.
Technical outlook for EUR/USD
The EUR/USD came into the last 36 hours very overbought short-term and due for a correction. Well, the selling that commenced at the end of the US session Wednesday has served to eradicate that overbought situation. Now, technicians are scrambling to determine where the correction may stop. The consensus seems to be favoring a little more downside for the EUR/USD before the recent uptrend resumes. With EUR/USD currently at 1.3214, short-term support comes in at Thursday’s low of 1.3193 and is backed up by “correction support” at 1.3123. Very short-term resistance comes in at Thursday’s intra-day pivot at 1.3266 and is followed on the upside by Wednesday’s high of 1.3344.