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16 Sep 2013
EUR/USD testing highs around 1.3380
FXstreet.com (Edinburgh) -The single currency is gathering steam again on Monday, pushing the EUR/USD to test intraday highs around post-Summers news at 1.3370/80.
EUR/USD propped up by soft US data
The pair is trading back to the upper band of the range after the regional gauge of the manufacturing sector sponsored by the Empire State index dropped to 6.29 for the month of September against consensus waiting for a raise to 9.10 and down from August’s 8.24. The greenback keeps losing ground as risk appetite trends are intensifying ahead of the critical FOMC meeting on Wednesday. According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “USD longs jumped higher, though as the threat of US military action on Syria reduced these positions may also now have lessened. The return of Yellen as favourite to become the new Fed Chairman also bodes poorly for the USD… Speculators maintained long EUR positions for the sixth consecutive week, though for the second week running the size of the EUR positions dropped sharply. This is in tune with the dovish position of the ECB”.
EUR/USD levels to watch
As of writing the pair is up 0.61% at 1.3375 with the next hurdle at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21). On the flip side, a breakdown of 1.3298 (low Sep.16) would open the door to 1.3254 (low Sep.13) and finally 1.3247 (MA10d).
EUR/USD propped up by soft US data
The pair is trading back to the upper band of the range after the regional gauge of the manufacturing sector sponsored by the Empire State index dropped to 6.29 for the month of September against consensus waiting for a raise to 9.10 and down from August’s 8.24. The greenback keeps losing ground as risk appetite trends are intensifying ahead of the critical FOMC meeting on Wednesday. According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “USD longs jumped higher, though as the threat of US military action on Syria reduced these positions may also now have lessened. The return of Yellen as favourite to become the new Fed Chairman also bodes poorly for the USD… Speculators maintained long EUR positions for the sixth consecutive week, though for the second week running the size of the EUR positions dropped sharply. This is in tune with the dovish position of the ECB”.
EUR/USD levels to watch
As of writing the pair is up 0.61% at 1.3375 with the next hurdle at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21). On the flip side, a breakdown of 1.3298 (low Sep.16) would open the door to 1.3254 (low Sep.13) and finally 1.3247 (MA10d).