23 Oct 2013
EUR/USD treading water around 1.3760
FXstreet.com (Edinburgh) -The single currency seems to be attempting a consolidation pattern on Wednesday, with the EUR/USD now side-lining around 1.3760/70.
EUR/USD vulnerable on risk aversion
The increasing scenario favouring the risk-off trade is weighing on the single currency today, magnified by the absence of results/events in the 17-nation region and fading at the same time the post-NFP rally to the very doorsteps of 1.3800 the figure. The only release in the euro area will be the gauge of the consumer sentiment, expected at -14.4 for the month of October. Derek Halpenny, European Head of Global Markets Research at BTMU, noted, “The other key event today is the release of details on the stress tests of banks by the ECB. The ECB will work on the basis of banks requiring an 8% capital requirement. The review is likely to start in November and take close to a year. EUR/USD should remain supported on a day with little in the way of risk events to unsettle current momentum”.
EUR/USD key levels
At the moment the pair is losing 0.12% at 1.3762 and a breakdown of 1.3662 (low Oct.22) would open the door to 1.3651 (low Oct.21) and finally 1.3628 (MA10d). On the upside, the initial resistance aligns at 1.3793 (2013 high Oct.22) followed by 1.3800 (psychological level) and then 1.3815 (high Nov.14 2011).
EUR/USD vulnerable on risk aversion
The increasing scenario favouring the risk-off trade is weighing on the single currency today, magnified by the absence of results/events in the 17-nation region and fading at the same time the post-NFP rally to the very doorsteps of 1.3800 the figure. The only release in the euro area will be the gauge of the consumer sentiment, expected at -14.4 for the month of October. Derek Halpenny, European Head of Global Markets Research at BTMU, noted, “The other key event today is the release of details on the stress tests of banks by the ECB. The ECB will work on the basis of banks requiring an 8% capital requirement. The review is likely to start in November and take close to a year. EUR/USD should remain supported on a day with little in the way of risk events to unsettle current momentum”.
EUR/USD key levels
At the moment the pair is losing 0.12% at 1.3762 and a breakdown of 1.3662 (low Oct.22) would open the door to 1.3651 (low Oct.21) and finally 1.3628 (MA10d). On the upside, the initial resistance aligns at 1.3793 (2013 high Oct.22) followed by 1.3800 (psychological level) and then 1.3815 (high Nov.14 2011).