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11 Jun 2014
EUR/USD fades the spike, back to 1.3540
FXStreet (Edinburgh) - The bull attempt to the 1.3560 region seems to have run out of legs, with the EUR/USD now giving away earlier gains and returning to the 1.3540 area.
EUR/USD risk on, risk off
Despite the choppy session so far, the pair is managing well to keep the trade in the upper end of the intraday range around 1.3540/60. Absent relevant releases in both US and EMU dockets, the focus will turn to tomorrow’s US Retail Sales and the Industrial Production figures in the euro region. Greg Gibbs, FX Trading Strategist at RBS, assessed, “EUR price action is negative, falling below the range in the week before the ECB policy easing on 5 June (excluding the whippy action on the day of the ECB meeting). It suggests that as the markets have had time to absorb and adjust to the ECB message, they have concluded that the EUR is a better sell; potentially to fund carry trades in higher-yielding currencies”.
EUR/USD key levels
At the moment the pair is down 0.01% at 1.3544 and a breakdown of 1.3522 (low Jun.11) would expose 1.3503 (low Jun.5) and then 1.3482 (low Feb.6). On the flip side, the initial resistance aligns at 1.3602 (high Jun.10) ahead of 1.3604 (10-d MA) and finally 1.3639 (21-d MA).
EUR/USD risk on, risk off
Despite the choppy session so far, the pair is managing well to keep the trade in the upper end of the intraday range around 1.3540/60. Absent relevant releases in both US and EMU dockets, the focus will turn to tomorrow’s US Retail Sales and the Industrial Production figures in the euro region. Greg Gibbs, FX Trading Strategist at RBS, assessed, “EUR price action is negative, falling below the range in the week before the ECB policy easing on 5 June (excluding the whippy action on the day of the ECB meeting). It suggests that as the markets have had time to absorb and adjust to the ECB message, they have concluded that the EUR is a better sell; potentially to fund carry trades in higher-yielding currencies”.
EUR/USD key levels
At the moment the pair is down 0.01% at 1.3544 and a breakdown of 1.3522 (low Jun.11) would expose 1.3503 (low Jun.5) and then 1.3482 (low Feb.6). On the flip side, the initial resistance aligns at 1.3602 (high Jun.10) ahead of 1.3604 (10-d MA) and finally 1.3639 (21-d MA).