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4 Nov 2013
EUR/USD hanging on by the fingernails above 1.3489 support as new week begins
FXstreet.com (Barcelona) - The recently battered and bruised EUR/USD is still giving the bulls some faint hope by closing Friday just above 1.3489 key support – and holding above that level heading into a busy week of data.
EUR/USD traders to monitor key data points all week
The EUR/USD cross will continue to be influenced by the varying levels of belief surrounding the idea of the US Fed commencing their QE-tapering program in December or January. That though seems outlandish at first glance considering the likely political bickering that will be heating up right around that time in Washington DC. However, if you look at some of the previously-stated concerns of the Fed – persistently high unemployment levels, the chance of deflation, the very lackluster growth in GDP in the US and the chance of systemic issues cropping up overseas – it seems to be more of a toss-up than a slam dunk in favor of tapering or no-tapering. Much seemingly will be decided by the “feel” of things at the time when those decisions will be made – with an obligatory nod being given to the QE-lovers Ben Bernanke and Janet Yellen. In the meantime, more emphasis will be placed on key data points like the big US employment report on Friday.
All of this week, the data will be flowing strong from Europe and the US starting with Monday’s scheduled releases: Manufacturing PMIs from all over Europe; EuroZone Investor Confidence; US ISM New York Index; US factory Orders; and, more Fed Heads making the rounds.
Technical outlook for EURUSD
As mentioned above, the technical crowd has a laser focus on the horizontal line support at 1.3489 – a close below which would spell more trouble for the EUR/USD in the short-term according to Elliott Wave technicians. Below 1,3489, the next support would come in at the 8/20 close of 1.3417. Resistance for the cross comes in at the 10/3 high of 1.3645 and is backed up by horizontal line resistance at 1.37.
EUR/USD traders to monitor key data points all week
The EUR/USD cross will continue to be influenced by the varying levels of belief surrounding the idea of the US Fed commencing their QE-tapering program in December or January. That though seems outlandish at first glance considering the likely political bickering that will be heating up right around that time in Washington DC. However, if you look at some of the previously-stated concerns of the Fed – persistently high unemployment levels, the chance of deflation, the very lackluster growth in GDP in the US and the chance of systemic issues cropping up overseas – it seems to be more of a toss-up than a slam dunk in favor of tapering or no-tapering. Much seemingly will be decided by the “feel” of things at the time when those decisions will be made – with an obligatory nod being given to the QE-lovers Ben Bernanke and Janet Yellen. In the meantime, more emphasis will be placed on key data points like the big US employment report on Friday.
All of this week, the data will be flowing strong from Europe and the US starting with Monday’s scheduled releases: Manufacturing PMIs from all over Europe; EuroZone Investor Confidence; US ISM New York Index; US factory Orders; and, more Fed Heads making the rounds.
Technical outlook for EURUSD
As mentioned above, the technical crowd has a laser focus on the horizontal line support at 1.3489 – a close below which would spell more trouble for the EUR/USD in the short-term according to Elliott Wave technicians. Below 1,3489, the next support would come in at the 8/20 close of 1.3417. Resistance for the cross comes in at the 10/3 high of 1.3645 and is backed up by horizontal line resistance at 1.37.