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15 Aug 2013
EUR/USD rips vertically on a 10-minute chart; still vulnerable macro set-up
FXstreet.com (Barcelona) - The EUR/USD just ripped straight higher for over 400 pips on non-news related buying. Still, any upside is corrective in nature unless 1.3414 is conquered say technicians.
EUR/USD will likely be trading off of US data Thursday
Despite the rip higher that just occurred on the intraday chart, the macro picture appears to be setting up for much more downside once this upside correction runs its course. The European markets are closed for the most part Thursday in honor of Ascension Day. So, EUR/USD traders will be focused 100% on the following data points out of the US – plus an expected speech by FOMC Governor Bullard around mid-day in the US:
• Monthly CPI data;
• Weekly Jobless Claims;
• TIC Flows;
• Industrial Production / Capacity Utilization; and,
• the US Philadelphia Fed Manufacturing Survey
Technical outlook for EUR/USD
The EUR/USD had worked significantly lower recently after peaking out at just under 1.3414 recently. That level remains THE key resistance for EUR/USD. However, there will be short-term resistance at the July 31st peak at 1.3344. Critical support for the bulls comes in at the 1.3187 level – although Tuesday’s low of 1.3233 remains very short-term support. A cross below 1.3187 will confirm that a top was made last Thursday and that a move down to the 1.2400 – 1.2500 range is under way.
EUR/USD will likely be trading off of US data Thursday
Despite the rip higher that just occurred on the intraday chart, the macro picture appears to be setting up for much more downside once this upside correction runs its course. The European markets are closed for the most part Thursday in honor of Ascension Day. So, EUR/USD traders will be focused 100% on the following data points out of the US – plus an expected speech by FOMC Governor Bullard around mid-day in the US:
• Monthly CPI data;
• Weekly Jobless Claims;
• TIC Flows;
• Industrial Production / Capacity Utilization; and,
• the US Philadelphia Fed Manufacturing Survey
Technical outlook for EUR/USD
The EUR/USD had worked significantly lower recently after peaking out at just under 1.3414 recently. That level remains THE key resistance for EUR/USD. However, there will be short-term resistance at the July 31st peak at 1.3344. Critical support for the bulls comes in at the 1.3187 level – although Tuesday’s low of 1.3233 remains very short-term support. A cross below 1.3187 will confirm that a top was made last Thursday and that a move down to the 1.2400 – 1.2500 range is under way.