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30 Apr 2013
Forex: EUR/USD upside capped around 1.3180
FXstreet.com (Barcelona) - The bull run that lifted the cross to the vicinity of 1.3180 on Tuesday is running out of steam, sparking a correction lower to the current area of 1.3165/70.
“The EURUSD level may be fine for Germany, but is obviously too high in the periphery given the rapid drop in growth there… Once again EURUSD can't hold a high and this time at much lower levels than in past years when it fell repeatedly at the seams. Eventually, the squeeze in short EURUSD will be over and the rush into BTP will fade”, suggested Analyst Sebastien Galy at Societe Generale.
As of writing, the cross is up 0.44% at 1.3157 and a surpass of 1.3158 (MA100d) would then target 1.3202 (high Apr.16) and finally 1.3229 (50% of feb-Apr slide).
On the flip side, support levels align at 1.3032 (MA21d) followed by 1.2988 (low Apr.25) and then 1.2958 (MA200d).
“The EURUSD level may be fine for Germany, but is obviously too high in the periphery given the rapid drop in growth there… Once again EURUSD can't hold a high and this time at much lower levels than in past years when it fell repeatedly at the seams. Eventually, the squeeze in short EURUSD will be over and the rush into BTP will fade”, suggested Analyst Sebastien Galy at Societe Generale.
As of writing, the cross is up 0.44% at 1.3157 and a surpass of 1.3158 (MA100d) would then target 1.3202 (high Apr.16) and finally 1.3229 (50% of feb-Apr slide).
On the flip side, support levels align at 1.3032 (MA21d) followed by 1.2988 (low Apr.25) and then 1.2958 (MA200d).