EUR/USD: daily update
As we said yesterday, the bulls have managed to push EUR/USD a bit higher. In the past sessions the pair has been consolidating below $1.2900. On the downside, there’s support at $1.2842/40. As long as euro stays above this level, it has a chance to test $1.2935 and $1.2950. Below there’s some support at $1.2820 and $1.2800 ahead of $1.2770 and $1.2750. We stick to our recommendation of selling euro on the pullbacks up.
The only release of importance in the euro zone – German PPI – disappointed (-0.2% vs. -0.1% expected). Later today there are speeches from Treasury Secretary Lew and the FOMC members Bullard (hawk) and Dudley (dove). The markets will also keep making guesses about Bernanke’s speech and the FOMC meeting minutes on Wednesday.
Chart. H4 EUR/USD