After a very quiet start to the week, the markets will be busy on Wednesday. The US Federal Reserve will also be front page and center, as the Fed releases the FOMC minutes and Bernard Bernanke testifies in front of a Congressional committee. After sustaining sharp losses,EUR/USD has posted a modest rally this week, gaining about one cent since Monday. In other economic news, the US releases Existing Home Sales, the first major event of the week. In the Eurozone, Current Account sparkled, posting its largest surplus in more than six years. German 10-year bonds will be up for auction, and the EU holds a summit in Brussels.
Here is a quick update on the technical situation, indicators, and market sentiment that moves euro/dollar.
EUR/USD Technical
- Asian session: Euro/dollar was steady, touching a high of 1.2938, and consolidating at 1.2909. over the 1.29 line early in the session before consolidating at 1.2887. The pair has edged higher in the European session.
- Current range: 1.2880 – 1.2960.
Further levels in both directions:
- Below: 1.2880, 1.2805, 1.2750, 1.27, 1.2624 and 1.2587.
- Above: 1.2960, 1.30, 1.3030, 1.31, 1.3160 and 1.32.
- 1.2880 is providing support. This line is slightly stronger as the pair trades at higher levels.
- 1.2960 is the next line of resistance. It could face pressure if the euro continues to push higher.
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