30 Aug 2013
EUR/USD hammered Thursday on weak German and better US data – plus Syria
FXstreet.com (Barcelona) - The EUR/USD posts one of the worst declines in the last two months as the perfect storm of “weakish” German data, stronger US data and DXY-supportive news hit the cross throughout the day.
Bad German data + strong US data = lower EUR/USD
The EUR/USD took a sizeable downside hit Thursday as data flow and Syrian news took its toll on the cross. German unemployment numbers came in a bit higher than expected, their inflation numbers came in below expectations (both data points euro-bearish), US GDP revisions for Q2 were far better than expected and the rest of the US data basically did nothing to disrupt the bearish vibe for EUR/USD.
Early Friday, traders will be digesting German retail sales data, EuroZone Consumer Confidence and a litany of other minor data from Europe. Later in the day, US data points (personal income, spending and consumption numbers, Chicago PMI data and the University of Michigan Consumer Sentiment Index) will be flowing. All of this will continue to have the Syrian noise in the background.
Technical outlook for EUR/USD
Technicians say EUR/USD has broken down short-term, but that some additional support is nearby at 1.3205. Below that is Fibonacci support at 1.3151. Resistance layers are starting to pile up with 1.3300 and 1.3352 being the first two levels EUR/USD will need to conquer.
Bad German data + strong US data = lower EUR/USD
The EUR/USD took a sizeable downside hit Thursday as data flow and Syrian news took its toll on the cross. German unemployment numbers came in a bit higher than expected, their inflation numbers came in below expectations (both data points euro-bearish), US GDP revisions for Q2 were far better than expected and the rest of the US data basically did nothing to disrupt the bearish vibe for EUR/USD.
Early Friday, traders will be digesting German retail sales data, EuroZone Consumer Confidence and a litany of other minor data from Europe. Later in the day, US data points (personal income, spending and consumption numbers, Chicago PMI data and the University of Michigan Consumer Sentiment Index) will be flowing. All of this will continue to have the Syrian noise in the background.
Technical outlook for EUR/USD
Technicians say EUR/USD has broken down short-term, but that some additional support is nearby at 1.3205. Below that is Fibonacci support at 1.3151. Resistance layers are starting to pile up with 1.3300 and 1.3352 being the first two levels EUR/USD will need to conquer.