EUR/USD looks to regain 1.3600

Pablo Piovano FXStreet

FXStreet (Edinburgh) - The euro is now attempting a bounce off the 1.3590 area, lifting the EUR/USD to the vicinity of 1.3600 the figure.

EUR/USD hinges on US docket

The absence of data releases or events in the euro area tomorrow and Friday will prompt EUR traders to look for catalyst the other side of the Atlantic: Q1 GDP, Initial Claims and Pending Home Sales all due tomorrow while PCE, the Reuters/Michigan index speeches by Fed’s Lacker, Williams and Plosser due on Friday. In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, “the short-term technicals are bearish… all studies are warning of potential downside risk; as spot trends lower and breaks to new multi-month lows and below the 200-day MA. For near term traders we favour short EUR positions; particularly as with the RSI at just 38 there is still plenty of downside room before the currency reaches oversold levels. Support lies at 1.3520”.

EUR/USD relevant levels

As of writing the pair is losing 0.30% at 1.3593 with the next support at 1.3585 (low Feb.13) ahead of 1.3563 (low Feb.12) and finally 1.3552 9low Feb.7). On the upside, a break above 1.3638 (high May 28) would open the door to 1.3669 (high May 27) and then 1.3672 (Tenkan Sen).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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