10 Dec 2013
EUR/USD off highs, back to 1.3770
FXstreet.com (Edinburgh) - After climbing to the vicinity of the 1.3800 handle, the EUR/USD initiated a correction lower to a new visit of the 1.3770/65 area on Monday.
EUR/USD trimming gains
It seems the risk appetite is taking a breather, dragging the pair from fresh 6-week highs to the current area around 1.3770, where it is attempting to consolidate. The pair would be poised to extend the sideline pattern into Wednesday, ahead of the final inflation figures in Germany. “The combination of the ECB’s tone, including the failure to focus on negative interest rates at the last meeting as well as the central bank’s more limited tool kit have supported EUR on the relative monetary policy side. In addition, today’s rise has been partially fueled by optimism that there is progress being made in the European banking sector”, observed Camilla Sutton, Chief Strategist at Scotiabank.
EUR/USD levels to watch
As of writing the pair is up 0.22% at 1.3771 with the next resistance at 1.3795 (high Dec.10) ahead of 1.3818 (high Oct.28) and finally 1.3833 (high Oct.25). On the flip side, a breakdown of 1.3695 (low Dec.9) would open the door to 1.3638 (daily cloud top) and then 1.3620 (low Dec.6).
EUR/USD trimming gains
It seems the risk appetite is taking a breather, dragging the pair from fresh 6-week highs to the current area around 1.3770, where it is attempting to consolidate. The pair would be poised to extend the sideline pattern into Wednesday, ahead of the final inflation figures in Germany. “The combination of the ECB’s tone, including the failure to focus on negative interest rates at the last meeting as well as the central bank’s more limited tool kit have supported EUR on the relative monetary policy side. In addition, today’s rise has been partially fueled by optimism that there is progress being made in the European banking sector”, observed Camilla Sutton, Chief Strategist at Scotiabank.
EUR/USD levels to watch
As of writing the pair is up 0.22% at 1.3771 with the next resistance at 1.3795 (high Dec.10) ahead of 1.3818 (high Oct.28) and finally 1.3833 (high Oct.25). On the flip side, a breakdown of 1.3695 (low Dec.9) would open the door to 1.3638 (daily cloud top) and then 1.3620 (low Dec.6).