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27 Aug 2013
EUR/USD showing signs of correction as lingering bearishness returns
FXstreet.com (New York) - The EUR/USD foreign exchange rate has rebounded off earlier lows (1.3323) incurred on the back end of US data Tuesday, however the pair is showing signs of creeping bearishness that threaten a correction.
In the United States, S&P/Case-Shiller Home Price Indices (YoY) came in at +12.1% in June, beating estimates of +12.0%. In addition, the Redbook Index (MoM) grew by +0.3%, compared to a figure of +0.2% previously. Finally, the Redbook Index (MoM) yielded a figure of +3.8%, relative to +3.4% previously.
EUR/USD strategic bias
According to the Technical Analyst Team at ICN.com, “The EUR/USD dropped affected by stabilizing below Linear Regression Indicator 34 and 55 that are trading negatively. Stochastic is also showing a negative crossover below line 50 and RSI is trading in a negative bias below line 50. The previous catalysts force us to think that the pair is heading towards testing 23.6% correction at 1.3290 – 1.3280 close to the main support level of the ascending channel despite that the pair is still within the channel. Of note, breaking the mentioned levels will cause a stronger bearish wave. Therefore, we still hold on to our negative intraday expectations today.”
EUR/USD technical levels
After bouncing off an earlier depth, the EUR/USD has recovered the mark of 1.3345 in these moments, still suffering a loss of -0.15% off its opening during US trading. Briefing the technicals, the EUR/USD will encounter support at 1.3340, ahead of 1.3323 (session low), notes the Mataf.net analyst team.
In the United States, S&P/Case-Shiller Home Price Indices (YoY) came in at +12.1% in June, beating estimates of +12.0%. In addition, the Redbook Index (MoM) grew by +0.3%, compared to a figure of +0.2% previously. Finally, the Redbook Index (MoM) yielded a figure of +3.8%, relative to +3.4% previously.
EUR/USD strategic bias
According to the Technical Analyst Team at ICN.com, “The EUR/USD dropped affected by stabilizing below Linear Regression Indicator 34 and 55 that are trading negatively. Stochastic is also showing a negative crossover below line 50 and RSI is trading in a negative bias below line 50. The previous catalysts force us to think that the pair is heading towards testing 23.6% correction at 1.3290 – 1.3280 close to the main support level of the ascending channel despite that the pair is still within the channel. Of note, breaking the mentioned levels will cause a stronger bearish wave. Therefore, we still hold on to our negative intraday expectations today.”
EUR/USD technical levels
After bouncing off an earlier depth, the EUR/USD has recovered the mark of 1.3345 in these moments, still suffering a loss of -0.15% off its opening during US trading. Briefing the technicals, the EUR/USD will encounter support at 1.3340, ahead of 1.3323 (session low), notes the Mataf.net analyst team.