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3 Oct 2013
EUR/USD explodes to 1.3624, 8-month peaks
FXstreet.com (Chicago) - EUR/USD extends rally on positive Chinese data, a highly pressured greenback and stronger euro. For a 0.67% advance so far, the pair seconds top performers among major currencies behind the Aussie/greenback pair.
US runs out of time
With a dollar under high pressure and after rather hawkish comments by Draghi on yesterday’s ECB press conference after 0.5% interest rate decision, the pair targets 1.37 zone. Moreover, as Jim Langlands notices “the other main point of focus remains the gridlock in the US Government, with the market concerned that the Oct 17th date to lift the debt ceiling is fast approaching, without any apparent compromise on either side to reach any kind of deal. If nothing positive happens, then things really could look bleak, with the chances that the US could default on its debt and undergo further credit ratings cuts which would undermine future economic growth which could have major ramifications for the dollar.”
EUR/USD Technical Levels
Flowing with the primary, secondary and short-term rhythm, the pair is precipitated to 8-month highs on impulsive price action in-between bullish channel boundaries. Offered at 1.3614, the pair navigates between supports aligned at 1.3564 (September 19th highs), 1.3461 (September 25th lows) ahead of 1.34 (August 28th highs) and resistances set at 1.3624 (session highs), 1.3716 (February 4th highs) followed by 1.3816 (September 1st 2011 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.
US runs out of time
With a dollar under high pressure and after rather hawkish comments by Draghi on yesterday’s ECB press conference after 0.5% interest rate decision, the pair targets 1.37 zone. Moreover, as Jim Langlands notices “the other main point of focus remains the gridlock in the US Government, with the market concerned that the Oct 17th date to lift the debt ceiling is fast approaching, without any apparent compromise on either side to reach any kind of deal. If nothing positive happens, then things really could look bleak, with the chances that the US could default on its debt and undergo further credit ratings cuts which would undermine future economic growth which could have major ramifications for the dollar.”
EUR/USD Technical Levels
Flowing with the primary, secondary and short-term rhythm, the pair is precipitated to 8-month highs on impulsive price action in-between bullish channel boundaries. Offered at 1.3614, the pair navigates between supports aligned at 1.3564 (September 19th highs), 1.3461 (September 25th lows) ahead of 1.34 (August 28th highs) and resistances set at 1.3624 (session highs), 1.3716 (February 4th highs) followed by 1.3816 (September 1st 2011 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.