13 Nov 2013
EUR/USD in highs near 1.3470
FXstreet.com (Edinburgh) - Short covering would be the main force behind the sharp rebound from session troughs near 1.3390, pushing the EUR/USD to fresh multi-day highs beyond 1.3460.
EUR/USD bounced off lows
Downbeat comments by ECB’s P.Praet - leaving the door open for negative deposit rates or even increase the size of the central bank’s balance sheet - have heavily weighed on the EUR, although the decline was not sustained, allowing the current steep rebound. In light of tomorrow’s testimony by Janet Yellen, Strategists G.Moore and S.Osborne at TD Securities commented “Bernanke’s remarks tonight, and Yellen’s testimony tomorrow are the highlight events in the coming sessions, and whether they indicate earlier tapering (even via any changes in their outlook on the recovery) should be the biggest driver for EUR/USD. A lack of clear indication of earlier tapering could see a further squeeze higher for the pair in the short run, but the broader trend is still lower in our view”.
EUR/USD key levels
At the moment the pair is advancing 0.15% at 1.3452 with the next resistance at 1.3529 (high Nov.7) followed by 1.3548 (high Nov.6) and finally 1.3589 (high Nov.1). On the downside, a break below 1.3466 (daily cloud top) would open the door to 1.3456 (high Nov.13) and then 1.3390 (low Nov.13).
EUR/USD bounced off lows
Downbeat comments by ECB’s P.Praet - leaving the door open for negative deposit rates or even increase the size of the central bank’s balance sheet - have heavily weighed on the EUR, although the decline was not sustained, allowing the current steep rebound. In light of tomorrow’s testimony by Janet Yellen, Strategists G.Moore and S.Osborne at TD Securities commented “Bernanke’s remarks tonight, and Yellen’s testimony tomorrow are the highlight events in the coming sessions, and whether they indicate earlier tapering (even via any changes in their outlook on the recovery) should be the biggest driver for EUR/USD. A lack of clear indication of earlier tapering could see a further squeeze higher for the pair in the short run, but the broader trend is still lower in our view”.
EUR/USD key levels
At the moment the pair is advancing 0.15% at 1.3452 with the next resistance at 1.3529 (high Nov.7) followed by 1.3548 (high Nov.6) and finally 1.3589 (high Nov.1). On the downside, a break below 1.3466 (daily cloud top) would open the door to 1.3456 (high Nov.13) and then 1.3390 (low Nov.13).