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EUR/USD: news from the battlefield

EUR/USD is trading above the $1.3250 mark on Tuesday. On Monday, despite the post-NFP dip to $1.3175, the pair recouped losses and closed at $1.3255 as the French President Francois Hollande said yesterday the euro zone’s crisis is over.

For now the upside remains capped by the sell orders clustered at $1.3290/3310. We will be prepared to buy euro on a break above these levels as, technically, the pair could extend the upside towards the $1.3500 mark. The pair remains supported in the $1.3200/3175 area (23.6% Fibo, trend line support, Monday’s low). Medium-term picture remains bullish until we hold above these levels.

As for the economic calendar, today the German Constitutional Court starts a 2-day public hearing on the legality of the European Central Bank’s “outright monetary transactions” (OMT) program. The Court is not expected to reject the OMT, but it may ask for additional guarantees or transfer the case to the European Court in Luxembourg.  Tomorrow euro zone will release April industrial production figures (forecast: -0.2%, prev.: +1.0%). Both events may limit the euro’s upside. 

Chart. H4 EUR/USD

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