15 Oct 2013
EUR/USD treading water around 1.3500
FXstreet.com (Edinburgh) -The EUR/USD is meandering around 1.3480/1.3500 on Tuesday, against the backdrop of increasing uncertainties regarding the US fiscal stand-off.
EUR/USD suffering the USD strength
Politicians in Washington could not find common ground in order to raise the US borrowing authority today, hurting investor confidence and intensifying the buying pressure around the greenback. At the moment, talks are suspended in the Senate, waiting for Republicans to come out with another plan to deal with the debt ceiling. Camilla Sutton, Chief Strategist at Scotiabank, argued that technical studies remain mixed “and shifting increasingly bearish. Las week EUR failed to rally above the October 3rd high at 1.3646 and downside momentum is building. We favour EUR short positions, looking for a near-term test of the 50-day MA at 1.3392”.
EUR/USD key levels
At the moment the pair is losing 0.34% at 1.3514 and a breakdown of 1.3467 (low Sep.30) would expose 1.3462 (low Sep.25) and finally 1.3444 (MA30d). On the upside, the initial resistance lies at 1.3571 (high Oct.15) followed by 1.3598 (high Oct.14) and then 1.3605 (high Oct.9).
EUR/USD suffering the USD strength
Politicians in Washington could not find common ground in order to raise the US borrowing authority today, hurting investor confidence and intensifying the buying pressure around the greenback. At the moment, talks are suspended in the Senate, waiting for Republicans to come out with another plan to deal with the debt ceiling. Camilla Sutton, Chief Strategist at Scotiabank, argued that technical studies remain mixed “and shifting increasingly bearish. Las week EUR failed to rally above the October 3rd high at 1.3646 and downside momentum is building. We favour EUR short positions, looking for a near-term test of the 50-day MA at 1.3392”.
EUR/USD key levels
At the moment the pair is losing 0.34% at 1.3514 and a breakdown of 1.3467 (low Sep.30) would expose 1.3462 (low Sep.25) and finally 1.3444 (MA30d). On the upside, the initial resistance lies at 1.3571 (high Oct.15) followed by 1.3598 (high Oct.14) and then 1.3605 (high Oct.9).