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20 May 2013
EUR/USD little changed after Italian data
FXstreet.com (Barcelona) - The single currency remained indifferent in the upper end of the range after the Italian industrial sector posted mixed results during March.
In fact, on a yearly basis industrial sales contracted 7.6% while orders dropped 10.0% vs. February’s -6.0% and -7.9%, respectively.
Strategist Matt Perrier at BMO remarks the formation of an H&S pattern, adding “would look to use rallies back to 1.2950/1.3050 as a opportunity to get short for a test of neckline support. A clear close below the neckline would suggest a 10 big figure downside target and would look for that move to take up to 2 months to develop”.
At the moment, the pair is gaining 0.17% at 1.2865 facing the next hurdle at 1.2890 (high May 17) ahead of 1.2930 (high May 16) and finally 1.2943 (high May 15).
On the flip side, a breakdown of 1.2796 (low May 17) would aim for 1.2740 (2013 low Apr.4) en route to the psychological mark at 1.2700.
In fact, on a yearly basis industrial sales contracted 7.6% while orders dropped 10.0% vs. February’s -6.0% and -7.9%, respectively.
Strategist Matt Perrier at BMO remarks the formation of an H&S pattern, adding “would look to use rallies back to 1.2950/1.3050 as a opportunity to get short for a test of neckline support. A clear close below the neckline would suggest a 10 big figure downside target and would look for that move to take up to 2 months to develop”.
At the moment, the pair is gaining 0.17% at 1.2865 facing the next hurdle at 1.2890 (high May 17) ahead of 1.2930 (high May 16) and finally 1.2943 (high May 15).
On the flip side, a breakdown of 1.2796 (low May 17) would aim for 1.2740 (2013 low Apr.4) en route to the psychological mark at 1.2700.