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17 Jun 2013
EUR/USD in narrow range around 1.3340
FXstreet.com (Edinburgh) - It seems that volatility is fading away in the bloc currency, as the EUR/USD remains locked within a narrow range around 1.3340 on Monday.
FOMC, PMI to set the trade in EUR/USD
The euro would remain in centre stage ahead in the week, as the FOMC meeting is due on Wednesday with the Fed’s ‘tapering’ on focus and the advanced manufacturing PMI prints will be released on Thursday, looking to extend the recent recovery. In the opinion of Sean Callow, Strategist at Westpac, “EUR looking overdone on the topside and the EZ-US relative growth outlook still ultimately favours a trend shift in yield spreads back in the USD’s favour. We stick with a negative EUR bias on a 1 and 3mth horizon”.
EUR/USD key levels
At the moment the pair is losing 0.08% at 1.3337 and a breakdown of 1.3295 (low Jun.14) would open the door to 1.3279 (low Jun.13) and finally 1.3266 (low Jun.12). On the upside, the next hurdle lies at 1.3390 (high Jun.13) ahead of 1.3434 (high Feb.20) and then 1.3456 (high Feb.14).
FOMC, PMI to set the trade in EUR/USD
The euro would remain in centre stage ahead in the week, as the FOMC meeting is due on Wednesday with the Fed’s ‘tapering’ on focus and the advanced manufacturing PMI prints will be released on Thursday, looking to extend the recent recovery. In the opinion of Sean Callow, Strategist at Westpac, “EUR looking overdone on the topside and the EZ-US relative growth outlook still ultimately favours a trend shift in yield spreads back in the USD’s favour. We stick with a negative EUR bias on a 1 and 3mth horizon”.
EUR/USD key levels
At the moment the pair is losing 0.08% at 1.3337 and a breakdown of 1.3295 (low Jun.14) would open the door to 1.3279 (low Jun.13) and finally 1.3266 (low Jun.12). On the upside, the next hurdle lies at 1.3390 (high Jun.13) ahead of 1.3434 (high Feb.20) and then 1.3456 (high Feb.14).