Back
23 Sep 2013
EUR/GBP dumped and testing key support
FXstreet.com (London) - EUR/GBP dropped from 0.8440 to test the 0.8400 handle while the uncertainty around the German coalition could drag on for sometime with Merkel’s CDU’s party missing a majority win.
Research teams at TD Securities explained, “…coalition uncertainty could drag on for some time, never a positive for the EUR. That should leave German headlines an import issue for week”. Meanwhile, as the teams at TD securities noted, September flash PMIs were mixed, with stronger than expected services in France at 50.7 (cons 49.6, highest since Jan‘12) and Germany at 54.4 (cons 53.0, highest since Feb ‘12), but weaker manufacturing at 51.3 in Germany (cons 52.2) and 49.5 in France (cons 50.1). The details in the French survey continue to be softer, with on-going job losses and new business volumes unchanged on the month, while in Germany, both of these sub indices showed further gains. For the UK this week, we are looking out for the GDP Q/Q and Y/Y on Thursday.
EUR/GBP levels
The 20 DMA is .8462, the 50 DMA is .8554 and the 200 DMA is .8503. RSI (14) reads 28.73. Supports are ascending from .8353, .8370, .8399, and .8411. Spot is currently .8413 while resistances are coming at .8445, .8488, .8505, .8520 and .8537.
Research teams at TD Securities explained, “…coalition uncertainty could drag on for some time, never a positive for the EUR. That should leave German headlines an import issue for week”. Meanwhile, as the teams at TD securities noted, September flash PMIs were mixed, with stronger than expected services in France at 50.7 (cons 49.6, highest since Jan‘12) and Germany at 54.4 (cons 53.0, highest since Feb ‘12), but weaker manufacturing at 51.3 in Germany (cons 52.2) and 49.5 in France (cons 50.1). The details in the French survey continue to be softer, with on-going job losses and new business volumes unchanged on the month, while in Germany, both of these sub indices showed further gains. For the UK this week, we are looking out for the GDP Q/Q and Y/Y on Thursday.
EUR/GBP levels
The 20 DMA is .8462, the 50 DMA is .8554 and the 200 DMA is .8503. RSI (14) reads 28.73. Supports are ascending from .8353, .8370, .8399, and .8411. Spot is currently .8413 while resistances are coming at .8445, .8488, .8505, .8520 and .8537.