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5 Jul 2013
EUR/USD stabilizes around 1.2830
FXstreet.com (Edinburgh) - It seems the EUR/USD found a new comfort zone around 1.2830, as market participants continues to digest June’s Payrolls and the ECB’s hangover is dying-off.
EUR/USD posed to test further lows
The solid US employment data came in to confirm the incipient recovery in the US economy, although many traders may argue that the pace it’s somehow slow, it is a recovery nonetheless. And it continues to widen the gap with the rest of its peers. According to BBH Global Currency Strategy Team, “The jobs data will strengthen expectations of tapering Fed asset purchases, but we still think the talk of a move later this month is pre-mature. US yields are rising sharply in the aftermath of the jobs report… Looking at the Fed funds and Eurodollar futures curve, the market perceives an increased likelihood of a late 2014 hike in the Fed funds rate, which is completely discounted by early 2015”.
EUR/USD key levels
The pair is now losing 0.64% at 1.2831 with the next support at 1.2796 (low May 17) followed by 1.2765 (weekly cloud base) and finally 1.2740 (2013low Apr.4). On the upside, a break above 1.3008 (MA10d) would expose 1.3032 (high Jul.3) and then 1.3047 (MA100d).
EUR/USD posed to test further lows
The solid US employment data came in to confirm the incipient recovery in the US economy, although many traders may argue that the pace it’s somehow slow, it is a recovery nonetheless. And it continues to widen the gap with the rest of its peers. According to BBH Global Currency Strategy Team, “The jobs data will strengthen expectations of tapering Fed asset purchases, but we still think the talk of a move later this month is pre-mature. US yields are rising sharply in the aftermath of the jobs report… Looking at the Fed funds and Eurodollar futures curve, the market perceives an increased likelihood of a late 2014 hike in the Fed funds rate, which is completely discounted by early 2015”.
EUR/USD key levels
The pair is now losing 0.64% at 1.2831 with the next support at 1.2796 (low May 17) followed by 1.2765 (weekly cloud base) and finally 1.2740 (2013low Apr.4). On the upside, a break above 1.3008 (MA10d) would expose 1.3032 (high Jul.3) and then 1.3047 (MA100d).