Back
30 Sep 2013
EUR/USD gaps lower then rebounds a bit – a test of 1.3460 support likely
FXstreet.com (Barcelona) - The EUR/USD showed early Monday that traders are taking the concerns about Italy’s government slightly more seriously than the looming government shutdown in the US.
Data due out from Europe and US – but traders likely to remain focused on geo-politics
EUR/USD traders have taken the cross lower at the open Monday – appropriate given the very serious short-term concerns out of Italy. Those concerns are apparently weighing more on the minds of traders than is the looming deadline for government shutdown in the United States. This makes sense as the US has had these types of shutdowns previously and they have proven to be a nuisance, but not “deal-breakers”. The entire government in Italy crumbling, though, would be a deal-breaker for Italy and would certainly ruin the recent positive vibe surrounding Europe.
The EUR/USD, in addition to government concerns in Italy and the US, will be reacting to varying degrees to Chinese Manufacturing PMI, German retail sales, EU consumer prices and the US Chicago PMI.
Technical outlook for EUR/USD
Technicians say the EUR/USD remains bullish as long as Wednesday and Thursday’s low of 1.3461 holds up as support. A breakdown below that level will lead to a test of one or more of the next 3 levels – 1.3430, 1.3390 or 1.3366. If 1.3461 holds up, though, another thrust higher is possible that could take EUR/USD to new highs.
Data due out from Europe and US – but traders likely to remain focused on geo-politics
EUR/USD traders have taken the cross lower at the open Monday – appropriate given the very serious short-term concerns out of Italy. Those concerns are apparently weighing more on the minds of traders than is the looming deadline for government shutdown in the United States. This makes sense as the US has had these types of shutdowns previously and they have proven to be a nuisance, but not “deal-breakers”. The entire government in Italy crumbling, though, would be a deal-breaker for Italy and would certainly ruin the recent positive vibe surrounding Europe.
The EUR/USD, in addition to government concerns in Italy and the US, will be reacting to varying degrees to Chinese Manufacturing PMI, German retail sales, EU consumer prices and the US Chicago PMI.
Technical outlook for EUR/USD
Technicians say the EUR/USD remains bullish as long as Wednesday and Thursday’s low of 1.3461 holds up as support. A breakdown below that level will lead to a test of one or more of the next 3 levels – 1.3430, 1.3390 or 1.3366. If 1.3461 holds up, though, another thrust higher is possible that could take EUR/USD to new highs.