1 Jul 2013
EUR/USD correcting lower, around 1.3030
Fxstreet.com (Edinburgh) - The euro is prolonging its correction from session highs, currently driving the EUR/USD around the 1.3030 region on Monday.
EUR/USD trimming earlier gains
After hitting intraday highs beyond 1.3060, the shared currency is now giving away part of the overnight gains. Positive results from peripheral manufacturing PMI in the euro are were not enough to neutralize the lacklustre reading from Germany and the new record high unemployment in the bloc, hitting 12.1% in May. In the opinion of Strategists G.Yu and G.Berry at UBS, “Capital continues to flow westward across the Atlantic, now driven mainly by US investors switching out of Eurozone stocks. If this pattern continues on the back of this growth dividend, EURUSD is likely to fall gradually towards our end-2013 forecast of 1.20”.
EUR/USD levels to watch
As of writing, the pair is advancing 0.15% at 1.3033 with the next resistance at 1.3103 (high Jun.28) ahead of 1.3115 (MA30d) and finally 1.3151 (high Jun.25). On the downside, a break below 1.3004 (low Jul.1) would open the door to 1.2991 (low Jun.28) and then 1.2985 (low Jun.26).
EUR/USD trimming earlier gains
After hitting intraday highs beyond 1.3060, the shared currency is now giving away part of the overnight gains. Positive results from peripheral manufacturing PMI in the euro are were not enough to neutralize the lacklustre reading from Germany and the new record high unemployment in the bloc, hitting 12.1% in May. In the opinion of Strategists G.Yu and G.Berry at UBS, “Capital continues to flow westward across the Atlantic, now driven mainly by US investors switching out of Eurozone stocks. If this pattern continues on the back of this growth dividend, EURUSD is likely to fall gradually towards our end-2013 forecast of 1.20”.
EUR/USD levels to watch
As of writing, the pair is advancing 0.15% at 1.3033 with the next resistance at 1.3103 (high Jun.28) ahead of 1.3115 (MA30d) and finally 1.3151 (high Jun.25). On the downside, a break below 1.3004 (low Jul.1) would open the door to 1.2991 (low Jun.28) and then 1.2985 (low Jun.26).