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10 Sep 2013
EUR/USD pressing higher towards Monday’s high and 1.3278 resistance
FXstreet.com (Barcelona) - The EUR/USD trading near the highs of the session and just below 1.3278 Fibonacci resistance and Monday’s high of 1.3280.
Tuesday’s trading to be driven by technicals and Syria again
One or more of the three following factors will derail this little rally in the EUR/USD:
1. Geo-political news could dictate a run to safe harbor assets and out of risk assets. The only question then will be whether the greenback is considered a safety asset or risk asset. Congress is currently scheduled to vote on military action in Syria on Wednesday.
2. Data flow may turn the EUR/USD back to the downside. Data will likely not play a major role in EUR/USD’s moves until Wednesday starting with German inflation data.
3. Meaningful technical resistance may be hit which would spur on another round of selling in the EUR/USD. As noted earlier, Fibonacci resistance comes in at 1.3278.
Technical outlook for EUR/USD
Technicians remain macro bearish on the EUR/USD with targets way down at the 1.24 – 1.25 range. This two-day rally that just occurred is almost certainly corrective in nature – the question is how high it might go. Technicians say the first targeted resistance is / was 1.3278 – which was tested Monday. If a close above that level occurs, 1.3318 is the next possible stop.
Tuesday’s trading to be driven by technicals and Syria again
One or more of the three following factors will derail this little rally in the EUR/USD:
1. Geo-political news could dictate a run to safe harbor assets and out of risk assets. The only question then will be whether the greenback is considered a safety asset or risk asset. Congress is currently scheduled to vote on military action in Syria on Wednesday.
2. Data flow may turn the EUR/USD back to the downside. Data will likely not play a major role in EUR/USD’s moves until Wednesday starting with German inflation data.
3. Meaningful technical resistance may be hit which would spur on another round of selling in the EUR/USD. As noted earlier, Fibonacci resistance comes in at 1.3278.
Technical outlook for EUR/USD
Technicians remain macro bearish on the EUR/USD with targets way down at the 1.24 – 1.25 range. This two-day rally that just occurred is almost certainly corrective in nature – the question is how high it might go. Technicians say the first targeted resistance is / was 1.3278 – which was tested Monday. If a close above that level occurs, 1.3318 is the next possible stop.