EUR/USD struggles to advance from consolidation
James Chen October 14, 2013 8:57 PM
<p>EUR/USD (daily chart) has been entrenched in a slightly bullish consolidation for the past three weeks, unable as of yet to reach its upside price […]</p>
EUR/USD (daily chart) has been entrenched in a slightly bullish consolidation for the past three weeks, unable as of yet to reach its upside price target at 1.3700. This consolidation has recently established the 1.3500 area as a key support region, and the pair used this level to initiate another attempt to advance during the latter part of last week. Early October saw a high of 1.3645, which was an eight-month high for the pair, before the price pulled back slightly below the 1.3500 support area.
With the US debt ceiling timeline quickly approaching without any concrete deal in place, the euro strengthened further against the dollar on Monday. With downside support currently still in place around the 1.3500 price region, the major upside objective continues to reside at 1.3700, last reached back in February. Subsequently, any strong breakout above 1.3700 should begin to target the key 1.4000 psychological level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.