EUR/USD: daily update
EUR/USD reached $1.3450 yesterday, then consolidated above June high at $1.3415 and slid below this level to $1.3380. The single currency closed on Tuesday at the highest level since Feb.
Credit Agricole expects euro to test $1.3450 today. Bank of Tokyo Mitsubishi UFJ warn that “the greater risk tonight appears to be a conclusion that tapering might come a little later than September, which leaves the dollar vulnerable to some further near-term selling versus the majors.” Danske Bank points out that potential downside for the pair is limited as QE tapering in itself is not enough to start a bigger dollar appreciation which will require support from relative rates.
Resistance is at $1.3415, $1.3450, $1.3500 and $1.3520. Support is at $1.3380, $1.3345, $1.3310.
Chart. Daily EUR/USD