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1 May 2013
Forex: EUR/USD inching higher towards 1.3200
FXstreet.com (Barcelona) - The bloc currency is attempting to break above the key resistance at 1.3200 on Wednesday, propped up by the increasing risk appetite ahead of the FOMC gathering due this evening.
In the meantime, the greenback, measured by the US Dollar Index, is printing fresh weekly lows. According to Jane Foley, Strategist at Rabobank, “Insofar as the market has built up heavy USD long positions there is risk that the USD correction still has a long way to go. That said, clearly a lot of risk lies with the tone of US economic data”.
The pair is now up 0.18% at 1.3192 with the next resistance at 1.3202 (high Apr.160 ahead of 1.3226 (50% of Feb-Apr slide) and then 1.3230 (daily cloud top).
On the flip side, a breakdown of 1.3120 (hourly high Apr.30) would open the door to 1.3050 (MA21d) and finally 1.2988 (low Apr.25).
In the meantime, the greenback, measured by the US Dollar Index, is printing fresh weekly lows. According to Jane Foley, Strategist at Rabobank, “Insofar as the market has built up heavy USD long positions there is risk that the USD correction still has a long way to go. That said, clearly a lot of risk lies with the tone of US economic data”.
The pair is now up 0.18% at 1.3192 with the next resistance at 1.3202 (high Apr.160 ahead of 1.3226 (50% of Feb-Apr slide) and then 1.3230 (daily cloud top).
On the flip side, a breakdown of 1.3120 (hourly high Apr.30) would open the door to 1.3050 (MA21d) and finally 1.2988 (low Apr.25).