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7 Oct 2013
EUR/USD range-bound around 1.3580
FXstreet.com (Edinburgh) -The shared currency is extending its erratic behaviour on Monday, although the EUR/USD remains within the intraday range so far.
EUR/USD swinging on US rumours
Rumours regarding a 6-month deal in the US, putting an end to the US federal shutdown and extending the deadline for the debt ceiling, were doing the rounds earlier on during the European afternoon, boosting the greenback and dragging the pair to fresh lows near 1.3540. The drop, however, reverted quickly and the pair managed to regain the proximities of 1.3580. “EUR/USD has found a small bid after Friday’s selloff, but the overall tone still looks to be consolidative, as it has for the past two weeks. A lack of data today means more range trading could prevail, but we continue to note that yield spreads are still more consistent with EUR/USD closer to 1.31/32 on a historic basis”, suggested analysts at TD Securities.
EUR/USD key levels
The pair is now advancing 0.11% at 1.3572 with the initial hurdle at 1.3632 (high Oct.4) followed by 1.3646 (high Oct.3) and then 1.3660 (high Feb.4). On the flip side, a violation of 1.3553 (low Oct.7) would target 1.3540 (MA10d) en route to 1.3538 (low Oct.4).
EUR/USD swinging on US rumours
Rumours regarding a 6-month deal in the US, putting an end to the US federal shutdown and extending the deadline for the debt ceiling, were doing the rounds earlier on during the European afternoon, boosting the greenback and dragging the pair to fresh lows near 1.3540. The drop, however, reverted quickly and the pair managed to regain the proximities of 1.3580. “EUR/USD has found a small bid after Friday’s selloff, but the overall tone still looks to be consolidative, as it has for the past two weeks. A lack of data today means more range trading could prevail, but we continue to note that yield spreads are still more consistent with EUR/USD closer to 1.31/32 on a historic basis”, suggested analysts at TD Securities.
EUR/USD key levels
The pair is now advancing 0.11% at 1.3572 with the initial hurdle at 1.3632 (high Oct.4) followed by 1.3646 (high Oct.3) and then 1.3660 (high Feb.4). On the flip side, a violation of 1.3553 (low Oct.7) would target 1.3540 (MA10d) en route to 1.3538 (low Oct.4).