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7 Sep 2013
EUR/USD clinging to positive territory
FXstreet.com (London) - Research teams at TD Securities said that net long EUR exposure appeared to peak last week along with the recent top in EUR/USD near 1.3400. “Net long contracts were nearly halved this week to 22.7k, from 40.1k in the week prior—a reduction valued at about USD3 bn”.
EUR/USD has remained and settled towards and into the 1.3180 territory, and is consolidating on an hourly basis in the 1.3170’s bracket. Research teams at TD Securities said that the EUR/USD continues to pressure support points in the low 1.31 area and even if the EUR is starting to look a bit oversold, a clear move below 1.3104 (50% retracement support from the July/August rally) has to be cleared on the downside to signal an extension to 1.29/1.30. “Disappointing payrolls will push EUR/USD back to the mid/upper 1.32s”. The US economy has created 169K jobs during August, missing expectations at 180K and down from July’s 104K (revised from 162K). The US jobless rate came in at 7.3% during the same period, bettering consensus at 7.4%.
EUR/USD negative bias
There are indications the pair should be capped at 1.3175/1.3220 “We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July) en route to the 1.2755 July low”, said Karen Jones at Commerzbank.
EUR/USD has remained and settled towards and into the 1.3180 territory, and is consolidating on an hourly basis in the 1.3170’s bracket. Research teams at TD Securities said that the EUR/USD continues to pressure support points in the low 1.31 area and even if the EUR is starting to look a bit oversold, a clear move below 1.3104 (50% retracement support from the July/August rally) has to be cleared on the downside to signal an extension to 1.29/1.30. “Disappointing payrolls will push EUR/USD back to the mid/upper 1.32s”. The US economy has created 169K jobs during August, missing expectations at 180K and down from July’s 104K (revised from 162K). The US jobless rate came in at 7.3% during the same period, bettering consensus at 7.4%.
EUR/USD negative bias
There are indications the pair should be capped at 1.3175/1.3220 “We look for a slide to 1.3020, 1.2904 (these are the 61.8% and the 78.6% retracements of the move up from July) en route to the 1.2755 July low”, said Karen Jones at Commerzbank.