OctaFX | OctaFX Forex Broker
Open trading account

Forex: EUR/USD climbs above 1.3300

Supported by the positive market mood and rising stocks, the shared currency advanced against the dollar and printed a fresh daily high above the 1.3300 mark.

EUR/USD pierced above the 1.3275 area, which was capping the upside (also 100-hour SMA), and stretched to a high of 1.3318 before easing a tad. At time of writing, the pair is quoting around 1.3305/10, still up 1.0% on the day.

From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that the 1.3350 is a key level to watch as a daily descendant trend line coming from 1.3710 is offering resistance. "Only above that level the upward movement could turn into a recovery and not a mere correction", the analyst says.

"The downside is now protected by buyers around 1.3210/20; once below, the pair has scope to fall back towards the 1.3150/70 price zone", Bednarik adds.

Forex Flash: UK growth seen as paramount culprit in downgrade – Westpac

There never really is a good day for a sovereign downgrade, however with the UK economy ending 2012 with a quarterly contraction of -0.3% as the Olympics boost dropped, the Bank of England recently voting 6:3 (versus 8:1) against a further £25bn of asset purchases and all the excitement surrounding the new Governor, the pound was always going to get hit on the news.
Read more Previous

Forex Flash: Sterling looks to have broken out of 2009 consolidative pattern - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that Sterling appears to have broken out of the consolidiative pattern that it has traced out since early 2009.
Read more Next
Start livechat