13 Nov 2013
EUR/USD keeps lows on EMU data
FXstreet.com (Edinburgh) -The selling interest around the single currency is picking up pace on Wednesday, dragging the EUR/USD to intraday lows in the 1.3420/10 area.
EUR/USD taking a breather
The bullish momentum in the EUR is now being undermined, as risk aversion is creeping back to the markets. Data-wise in the euro bloc, Spanish consumer prices followed the overall disinflationary trends during October while EMU’s industrial production contracted 0.5% inter-month and expanded at an annual pace of 1.1% during September. According to Tor Vollalokken, Analyst at Coaching FX Traders, “The real threat to a EUR/USD long position is likely more medium to long term from Taper being in place and later reductions in the Fed’s balance sheet, which would be the start of US tightening policies. And while such changes to Fed’s policies would be EUR/USD bearish, the impact might be reduced by the strength of a Euro area recovery at such times”.
EUR/USD key levels
At the moment the pair is losing 0.13% at 1.3416 and a breach of 1.3359 (low Nov.12) would target 1.3345 (low Nov.11) en route to 1.3318 (low Nov.8). On the upside, the immediate resistance lines up at 1.3456 (high Nov.13) ahead of 1.3466 (daily cloud top) and finally 1.3529 (high Nov.7).
EUR/USD taking a breather
The bullish momentum in the EUR is now being undermined, as risk aversion is creeping back to the markets. Data-wise in the euro bloc, Spanish consumer prices followed the overall disinflationary trends during October while EMU’s industrial production contracted 0.5% inter-month and expanded at an annual pace of 1.1% during September. According to Tor Vollalokken, Analyst at Coaching FX Traders, “The real threat to a EUR/USD long position is likely more medium to long term from Taper being in place and later reductions in the Fed’s balance sheet, which would be the start of US tightening policies. And while such changes to Fed’s policies would be EUR/USD bearish, the impact might be reduced by the strength of a Euro area recovery at such times”.
EUR/USD key levels
At the moment the pair is losing 0.13% at 1.3416 and a breach of 1.3359 (low Nov.12) would target 1.3345 (low Nov.11) en route to 1.3318 (low Nov.8). On the upside, the immediate resistance lines up at 1.3456 (high Nov.13) ahead of 1.3466 (daily cloud top) and finally 1.3529 (high Nov.7).