EUR/USD back to 1.2880

FXstreet.com (Edinburgh) - After a failed attempt to follow through the key resistance at 1.2900, the EUR/USD has been rejected to the current area of 1.2880, although the markets remain risk-on biased so far.

EUR/USD extends its corrective upside

The pair keeps alive the bull run sparked on Monday ahead of the key event risk on Wednesday from the FOMC minutes. The subsequent speech by Chairman Bernanke will be crucial to sustain the current EUR rally, in order to recover the psychological mark at 1.3000. “At the current rate of progress, EUR/USD will get back to 1.30 and the S&P will hit new highs if Ben Bernanke is as dovish as everyone expects when he speaks in Cambridge Mass, tomorrow”, commented Kit Juckes, Strategist at Societe Generale.

EUR/USD levels to watch

As of writing the pair is up 0.09% at 1.2884 with the next hurdle at 1.2916 (high Jul.5) ahead of 1.2950 (23.6% of 1.3417-1.2806) and finally 1.2963 (MA10d).On the flip side, a breakdown of 1.2845 (low Jul.19) would open the door to 1.2806 (low Jul.5) and then 1.2796 (low May.17).

UK: Annual Industrial Production drops more than expected in May


Year-over-year UK Industrial Production fell by 2.3% in May, following a 1.4% drop in April, National Statistics informed on Tuesday. Analysts forecasted less decrease of 1.5%. UK Industrial Production remained unchanged between April 2013 and May 2013, in comparison with the 0.1% decline registered between March 2013 and April 2013 and against expectations of a 0.2% increase.
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