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14 Aug 2013
EUR/USD taper-tagged lower Tuesday; key support at 1.3187 approaching
FXstreet.com (Barcelona) - The EUR/USD ignored Tuesday’s data for the most part and traded lower on the continuing chatter about Fed tapering plans in the US.
Tapering rumors apparently more important than actual data
It did not matter that the economic data out of Europe was, for the most part, slightly better than expected on Tuesday – the EUR/USD trended lower throughout most of the European session. Then, during the US market hours, traders saw US retail sales show decent growth despite coming in slightly below expectations while business inventories came in a little light as well. Still, none of that seemed to matter as the EUR/USD continued to drift lower until around 14:30 GMT – clearly a victim of more September tapering talk. At 14:30 GMT, though, some short-term Fibonacci price projections were hit and some technical buying came into the market. The EUR/USD finished off the lows of the session but still in an overall weak technical position short-term.
Wednesday, traders will get to digest German GDP, EuroZone CPI, EuroZone GDP, and the US Producer Price Index.
Technical outlook for EUR/USD
The EUR/USD still looks like it made a top last Thursday at 1.3399 – just shy of the 1.3414 resistance level that leading technicians have pointed to as critical resistance recently. Critical support for the bulls comes in at the 1.3187 level – although Tuesday’s low of 1.3233 will see some buyers trying to enter as well. A cross below 1.3187 will confirm that a top was made last Thursday and that a move down to the 1.2400 – 1.2500 range is under way.
Tapering rumors apparently more important than actual data
It did not matter that the economic data out of Europe was, for the most part, slightly better than expected on Tuesday – the EUR/USD trended lower throughout most of the European session. Then, during the US market hours, traders saw US retail sales show decent growth despite coming in slightly below expectations while business inventories came in a little light as well. Still, none of that seemed to matter as the EUR/USD continued to drift lower until around 14:30 GMT – clearly a victim of more September tapering talk. At 14:30 GMT, though, some short-term Fibonacci price projections were hit and some technical buying came into the market. The EUR/USD finished off the lows of the session but still in an overall weak technical position short-term.
Wednesday, traders will get to digest German GDP, EuroZone CPI, EuroZone GDP, and the US Producer Price Index.
Technical outlook for EUR/USD
The EUR/USD still looks like it made a top last Thursday at 1.3399 – just shy of the 1.3414 resistance level that leading technicians have pointed to as critical resistance recently. Critical support for the bulls comes in at the 1.3187 level – although Tuesday’s low of 1.3233 will see some buyers trying to enter as well. A cross below 1.3187 will confirm that a top was made last Thursday and that a move down to the 1.2400 – 1.2500 range is under way.