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15 Jul 2013
EUR/USD trading near session lows
FXstreet.com (New York) - The EUR/USD foreign exchange rate has dipped slightly lower Monday, during what has transpired as a relatively muted session with Japan on holiday.
At the time of writing, the EUR/USD is now operating in negative territory just above its lows (1.3053), having settled at 1.3060. The pair is slated to meet short-term supports at 1.3052 (50-day SMA), ahead of 1.3023 (July 3 high). Conversely, resistances lie higher at 1.3092 (June 28 high), onto 1.3146 (June 25 high).
Of note this week regarding the EUR is Portugal, which is once again at center stage with the Opposition leader insisting that austerity be abandoned, just hours after the President invited his party to cooperate with the imploding coalition government ahead of early elections. Portuguese bond yields rose by 30bp last week to 83bp along the curve (10-year back to 7.21%) on the view that there is diminishing prospect of a smooth transition back to market access when the current Portuguese bailout ends in June 2014.
EUR/USD strategic bias
According to Valeria Bednarik, an analyst at FXstreet.com, “The USD started the week slightly lower against its major rivals, with the EUR/USD gapping towards a short-term descendant trend line, currently around 1.3080 and immediate short term resistance. Thin volumes along with several Chinese fundamental numbers to be released later today, will likely keep majors in range over the first hours of the day, although a break above the line should keep the pair in the bullish path, eyeing 1.3140 resistance area. The downside will likely remain protected by buying interest around 1.3000/30.”
At the time of writing, the EUR/USD is now operating in negative territory just above its lows (1.3053), having settled at 1.3060. The pair is slated to meet short-term supports at 1.3052 (50-day SMA), ahead of 1.3023 (July 3 high). Conversely, resistances lie higher at 1.3092 (June 28 high), onto 1.3146 (June 25 high).
Of note this week regarding the EUR is Portugal, which is once again at center stage with the Opposition leader insisting that austerity be abandoned, just hours after the President invited his party to cooperate with the imploding coalition government ahead of early elections. Portuguese bond yields rose by 30bp last week to 83bp along the curve (10-year back to 7.21%) on the view that there is diminishing prospect of a smooth transition back to market access when the current Portuguese bailout ends in June 2014.
EUR/USD strategic bias
According to Valeria Bednarik, an analyst at FXstreet.com, “The USD started the week slightly lower against its major rivals, with the EUR/USD gapping towards a short-term descendant trend line, currently around 1.3080 and immediate short term resistance. Thin volumes along with several Chinese fundamental numbers to be released later today, will likely keep majors in range over the first hours of the day, although a break above the line should keep the pair in the bullish path, eyeing 1.3140 resistance area. The downside will likely remain protected by buying interest around 1.3000/30.”