24 Oct 2013
EUR/USD capped at 1.3793 session highs
FXstreet.com (Chicago) - EUR/USD flows with minor volatility with lows printed at $1.3774 and highs at $1.3793 on 20 pips range during the Asian session ahead of data releases and amid speculations of potential monetary intervention to weaken the euro.
Data
Market participants expect for data releases notably the EU Council Meeting, EU Flash Mfg, Services, Composite PMI, US Jobless Claims, New Home Sales, Mfg PMI.
EUR/USD Technical Levels
Jim Langlands from FXcharts states “technically, 1.3792 is now a minor double top ahead of the upper end of a potential channel at 1.3815 ahead of the major 1.3825 (61.8% of 1.4939/1.2041). If we get above this, then 1.3867 (4 Nov 2011 high) will be the next hurdle, beyond which there is further minor resistance at around 1.3920. In the longer term, the Euro is testing the base of the monthly cloud, which is not broad and which has a top at 1.3955. It has not been above the monthly cloud since Oct 2011, so if we do head above it – on a monthly close basis – the way is potentially open to much stronger gains. We shall see. On the downside, below today’s 1.3740 low, 1.3710 becomes the first obvious support and below there we will move back into the recent consolidation between 1.3500/1.3680. The first Fibo levels are now to be found at 1.3625 (23.6% of 1.3125/1.3792) and then at 1.3525 (38.2%), both of which look pretty safe for the time being.”
Data
Market participants expect for data releases notably the EU Council Meeting, EU Flash Mfg, Services, Composite PMI, US Jobless Claims, New Home Sales, Mfg PMI.
EUR/USD Technical Levels
Jim Langlands from FXcharts states “technically, 1.3792 is now a minor double top ahead of the upper end of a potential channel at 1.3815 ahead of the major 1.3825 (61.8% of 1.4939/1.2041). If we get above this, then 1.3867 (4 Nov 2011 high) will be the next hurdle, beyond which there is further minor resistance at around 1.3920. In the longer term, the Euro is testing the base of the monthly cloud, which is not broad and which has a top at 1.3955. It has not been above the monthly cloud since Oct 2011, so if we do head above it – on a monthly close basis – the way is potentially open to much stronger gains. We shall see. On the downside, below today’s 1.3740 low, 1.3710 becomes the first obvious support and below there we will move back into the recent consolidation between 1.3500/1.3680. The first Fibo levels are now to be found at 1.3625 (23.6% of 1.3125/1.3792) and then at 1.3525 (38.2%), both of which look pretty safe for the time being.”