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25 Nov 2013
EUR/USD finds support around 1.3510
FXstreet.com (Edinburgh) - The intraday decline in the EUR/USD seems to have found decent support around the 1.3510/00 area on Monday.
EUR/USD rebounds to 1.3520
While still in the red territory, the pair is now attempting a bounce to the 1.3520/25 region, as market participants now focus on the US housing data and the Dallas Fed manufacturing index. Following ECB’s officials comments regarding the recent rate cut in response to growing disinflationary pressures, Currency Analyst Lee Hardan at BTMU suggested, “Further easing will likely be required to weaken the euro with the recent refi cut having little impact upon the euro while the EONIA rate is drifting higher as liquidity tightens. It has encouraged a modest rebuilding of speculative euro short positions, which reached their highest level since late July”.
EUR/USD levels to watch
The pair is losing 0.17% at 1.3525 with the immediate support at 1.3493 (MA10d) ahead of 1.3463 (low Nov.22) and finally 1.3404 (daily cloud base). On the flip side, a breakout of 1.3561 (high Nov.25) would open the door to 1.3584 (high Nov.20) and then 1.3589 (high Nov.1).
EUR/USD rebounds to 1.3520
While still in the red territory, the pair is now attempting a bounce to the 1.3520/25 region, as market participants now focus on the US housing data and the Dallas Fed manufacturing index. Following ECB’s officials comments regarding the recent rate cut in response to growing disinflationary pressures, Currency Analyst Lee Hardan at BTMU suggested, “Further easing will likely be required to weaken the euro with the recent refi cut having little impact upon the euro while the EONIA rate is drifting higher as liquidity tightens. It has encouraged a modest rebuilding of speculative euro short positions, which reached their highest level since late July”.
EUR/USD levels to watch
The pair is losing 0.17% at 1.3525 with the immediate support at 1.3493 (MA10d) ahead of 1.3463 (low Nov.22) and finally 1.3404 (daily cloud base). On the flip side, a breakout of 1.3561 (high Nov.25) would open the door to 1.3584 (high Nov.20) and then 1.3589 (high Nov.1).