10 Oct 2013
EUR/USD got crushed Wednesday, but may have set a short-term low at 1.3488
FXstreet.com (Barcelona) - The EUR/USD may have finished the third and final stage of an “abc” correction lower with Wednesday’s low of 1.3488.
Was Wednesday temporary or the start of something more serious on downside for EUR/USD?
The EUR/USD> cross dropped sharply for nearly the entire session Wednesday on a combination of sketchy economic numbers and an obvious short-term bearish technical set-up (see below). The multiple fundamental cross-currents are not making life easy for those who trade only off fundamental factors.
Thursday, traders will have more data to digest – including the ECB Monthly Report, US import/export prices, US weekly jobless claims, multiple Fed Head speeches, the US 30-Year Bond auction and another speech by Mario Draghi.
Technical outlook for EUR/USD
Technicians say the EURUSD may have bottomed for this downside “abc” correction at 1.34885 mid-morning in Wednesday’s US session. They say to be on the lookout for a re-test of that low but that as long as it holds there could be a renewed upside move for EUR/USD – possibly taking the cross up to 1.3645 and points higher.
Was Wednesday temporary or the start of something more serious on downside for EUR/USD?
The EUR/USD> cross dropped sharply for nearly the entire session Wednesday on a combination of sketchy economic numbers and an obvious short-term bearish technical set-up (see below). The multiple fundamental cross-currents are not making life easy for those who trade only off fundamental factors.
Thursday, traders will have more data to digest – including the ECB Monthly Report, US import/export prices, US weekly jobless claims, multiple Fed Head speeches, the US 30-Year Bond auction and another speech by Mario Draghi.
Technical outlook for EUR/USD
Technicians say the EURUSD may have bottomed for this downside “abc” correction at 1.34885 mid-morning in Wednesday’s US session. They say to be on the lookout for a re-test of that low but that as long as it holds there could be a renewed upside move for EUR/USD – possibly taking the cross up to 1.3645 and points higher.