Forex: EUR/USD bounced from low on US consumer sentiment

FXstreet.com (Barcelona) - The EUR/USD kept testing the 1.3180/1.3200 area as support while being capped at 1.3220/30 whenever bulls pushed higher. US trading finally triggered an extension of the daily losses and printed a new low at 1.3167 just ahead of the US Reuters/Michigan Consumer Sentiment index.

The confidence indicator failed to meet the expected rise from 74.5 to 74.7. In fact, data fell to 72.9 in December. In reaction to the publication, the market bounced to 1.3195. However, the eye remains to the downside right now.

The US economic calendar indicates a Chicago Fed National Activity index up to 0.10 in November, from -0.64 in the prior month (revised from -0.56). Durable Goods eased from 1.1% to 0.7% in November, not as weak as the expected 0.2%. Personal income rose from 0.1% to 0.6%, beating 0.3% consensus, and personal spending grew 0.4% as expected.

“The intraday bearish reversal made on 19 December close to the resistance at 1.3284 suggests a weakening short-term momentum”, wrote MIG Bank analyst Bijoy Kar, pointing to hourly supports at 1.3144 (17/12/2012 low) and 1.3041 (13/12/2012 low).

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