EUR/USD rebounds from $1.2750
EUR/USD rebounded back above the $1.2800 mark from the yesterday’s support of $1.2750 on the back of the increasing risk appetite. French industrial production contracted slightly less than expected (-0.4% m/m vs. forecast -0.5% and prior +2.2%).
Later in the day all eyes will be on FOMC meeting minutes (18:00 GMT) and the Fed chairman Bernanke speech (20:00 GMT). New confirmation of the forthcoming Fed’s QE tapering will pressure EUR/USD.
A decline below $1.2750 support (2013 low) will open the way to our next bearish target at $1.2660 (November 2012 low). All the rebounds will be seen as corrective and are likely to be limited by the $1.2920/3000 area.
Analysts at Commerzbank agree: the pair broke below the $1.2795 gentle sloping support line (November 2012 low - 2013 lows). Below $1.2740 they target $1.2660 en route to the $1.2050 (200-months MA).
Chart. Daily EUR/USD