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23 Sep 2013
EUR/USD dips to 1.3510 on poor PMI
FXstreet.com (Edinburgh) -A bout of selling interest after disappointing PMI from core euro zone members dragged the EUR/USD to fresh intraday lows around 1.3510 on Monday.
EUR/USD found support around 1.3510
The disappointing results from the manufacturing sectors in France, Germany and the bloc as a whole surprised investors on Monday morning, pushing the pair to the area of 1.3510 where seems to have found decent support so far. Shaun Osborne, FX Strategist at TD Securities commented, “While short-term (2-year) Eurozone-US rate spreads remain within recent ranges, EUR/USD is likely to struggle to improve on the February high around 1.37. Spot looks to have overshot “fair value” based on spreads by a margin (two big figures or so) already. Either spot has to drop back or spreads need to contract more sharply to sustain the EUR rally”.
EUR/USD relevant levels
At the moment of writing the pair is retreating 0.05% at 1.3518 and a breakdown of 1.3498 (low Sep.20) would aim for 1.3453 (high Aug.20) and finally 1.3399 (high Aug.28). On the upside, the initial hurdle remains at 1.3569 (high Sep.19) followed by 1.3598 (high Feb,5) and then 1.3660 (high Feb.4).
EUR/USD found support around 1.3510
The disappointing results from the manufacturing sectors in France, Germany and the bloc as a whole surprised investors on Monday morning, pushing the pair to the area of 1.3510 where seems to have found decent support so far. Shaun Osborne, FX Strategist at TD Securities commented, “While short-term (2-year) Eurozone-US rate spreads remain within recent ranges, EUR/USD is likely to struggle to improve on the February high around 1.37. Spot looks to have overshot “fair value” based on spreads by a margin (two big figures or so) already. Either spot has to drop back or spreads need to contract more sharply to sustain the EUR rally”.
EUR/USD relevant levels
At the moment of writing the pair is retreating 0.05% at 1.3518 and a breakdown of 1.3498 (low Sep.20) would aim for 1.3453 (high Aug.20) and finally 1.3399 (high Aug.28). On the upside, the initial hurdle remains at 1.3569 (high Sep.19) followed by 1.3598 (high Feb,5) and then 1.3660 (high Feb.4).