EUR Higher in the Short-Term, Focus Today is on the Technicals
"EUR/USD was lifted by German Industrial Production released yesterday which showed an increase of 2.4% for last month. This was helped by a generally softer USD overall and with German Trade Balance being strong this morning, this has all contributed to pushing through recent highs of $1.3344," says Richard Driver at Caxton FX.
Euro Dollar exchange rate forecasted higher… and sideways
Turning to the latest short-term forecasts for the Euro Dollar exchange rate we hear from the team at ICN Financial Markets who say:
"The pair breached 1.3315 activating a new bullish wave for EURUSD. The bullish bias remains favoured with stability above 1.3270 but we prefer to see the pair consolidate above the breached resistance –now support- at 1.3315 to further support bullishness.
"The trading range for today is among the key support at 1.3230 and key resistance at 1.3505. The general trend over short term basis is sideways targeting 1.2775 as far as 1.3600 is daily-closing."
[Click Below to Enlarge - Click Here For Your Own Chart to Conduct Analysis On.]
Geoffrey Yu at UBS says he is forecasting further gains from the Euro but notes that price action has stalled somewhat:
"Yesterday the pair stalled at 1.3345. A move above this would trigger further upside to test the key resistance at 1.3417. Support is at 1.3266 ahead of the critical 1.3190."
The latest short term forecasts from FinFX are as follows:
"EUR/USD held above the 1.3264 central pivot, holding a bullish bias and is now pushing at the 1.3343 resistance pivot. There might be some near-term resistance here, but a break above 1.3343-1.3350 area should open up 1.34-1.3415 resistance area. At this point, a break below the 1.33 might neutralise the bullish outlook, and a break below 1.3260 could put the focus back toward the 1.32 handle."
Analysts at RoboForex have advised that they see further gains today:
"Euro broke the level of 1.3285. We think, today the price may reach the target at 1.3380, form a correction to return to the level of 1,3285, and then continue growing up towards the level of 1.3420."
Today's fundamental action
Turning to the fundamentals driving the euro exchange rates we note a rather quiet day, hence the above focus on technical drivers.
Boris Schlossberg at BK Asset Management says:
"German Trade balance beat to the upside slightly by printing at 15.7bn vs. 15.2 projected, but despite clear evidence of pick up in economic activity in the Eurozone the ECB reduced its estimates for growth in 2013 and 2014 to -0.6% from -0.4% and 0.9% from 1.0%.
"The euro however, ignored the downgrade as investors are becoming convinced of the rebound in the region and the pair climbed through the 1.3350 level as it gears up to challenge the key 1.3415 swing high from several months back."