EUR/USD traded a 1.2955 – 1.3047 range intraday, pulling back from last week's 4-month high, and finding a base at a 23.6% Fibonacci support level at 1.2900 (23.6%, 1.2041/1.3170); price continues to trade above the 200-day EMA (1.2850), and above a descending trendline support zone around 1.2800 (1.3485/1.3380 peaks).
U.S. equity markets ended the week little changed, as investors remain on edge about global growth, but market chatter that Spain may soon formally request European aid helped lift sentiment, alongside Apple Inc’s iPhone 5 debut.
Standard & Poor’s 500 Index shed less than a point to 1,460.16, ending down 0.1% for the week. The Dow Jones Industrial Average fell 17 points to 13,579.93, gaining 27.56 points, or 0.2% for the week. The Nasdaq hit a 12-year high before closing up 4 points, 0.1% to 3,179.96.
As RBS notes of the benchmark index: “[S&P] has traded poorly after reaching a strong resistance region of 1,460/70 region (the 176.4% projection from the Oct’11 impulse wave), as was suggested in the last weekly publication,” it says in a research note. “Unless the price breaks to new highs indicating assault on the above-1,500 region, the short term view is still for a correction/consolidation to be in place with key support levels of 1,450 and 1,427.”