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17 Aug 2013
EUR/USD, retreats at the closing of a volatile journey
FXstreet.com (Chicago) - EUR/USD lost 0.10% throughout the day amid intense speculations on Fed’s tapering and post euro-zone data releases in the early morning of the European session.
Too much noise, little action?
CPIs in the EU matched expectations at 1.6% (YoY) for July and a core CPI at 1.1%. Price action indicates there was high volatility with bulls sending the pair above 1.3375 and bears bringing it back below 1.3333 levels. In the US, housing starts for the month (MoM) failed to meet projections at 0.900M to settle for 0.896M. Building permits also fell short to match projected 0.945M with results at 0.943M. Moreover, the Reuters/Michigan Consumer Sentiment Index was 80.0 vs. expected 85.5.
FX expert analyst Valeria Bednarik states there are “little risk events ahead – all three BOE, ECB and FED’s heads will be absent in Jackson Hole Symposium next week, so little chances of fireworks coming from there - the EUR/USD seems poised to continue ranging between 1.3200 and 1.3415, past June high. Intraday spikes beyond those extremes are likely to be short lived, as investors will likely wait for FOMCs’ September meeting to actually define a trend in the pair.”
Technical Levels
Technically speaking, the pair trades at 1.3327 between supports at 1.3323 (July 25th highs), 1.3300 (August 5th highs) ahead of 1.3286 (August 6th highs) and resistances at 1.3344 (July 31st highs), 1.3359 (August 15th highs) followed by 1.3389 (August 9th highs). The FXstreet.com trend index reports the pair as slightly bearish on one-hour timeframe analysis.
Too much noise, little action?
CPIs in the EU matched expectations at 1.6% (YoY) for July and a core CPI at 1.1%. Price action indicates there was high volatility with bulls sending the pair above 1.3375 and bears bringing it back below 1.3333 levels. In the US, housing starts for the month (MoM) failed to meet projections at 0.900M to settle for 0.896M. Building permits also fell short to match projected 0.945M with results at 0.943M. Moreover, the Reuters/Michigan Consumer Sentiment Index was 80.0 vs. expected 85.5.
FX expert analyst Valeria Bednarik states there are “little risk events ahead – all three BOE, ECB and FED’s heads will be absent in Jackson Hole Symposium next week, so little chances of fireworks coming from there - the EUR/USD seems poised to continue ranging between 1.3200 and 1.3415, past June high. Intraday spikes beyond those extremes are likely to be short lived, as investors will likely wait for FOMCs’ September meeting to actually define a trend in the pair.”
Technical Levels
Technically speaking, the pair trades at 1.3327 between supports at 1.3323 (July 25th highs), 1.3300 (August 5th highs) ahead of 1.3286 (August 6th highs) and resistances at 1.3344 (July 31st highs), 1.3359 (August 15th highs) followed by 1.3389 (August 9th highs). The FXstreet.com trend index reports the pair as slightly bearish on one-hour timeframe analysis.