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22 May 2013
EUR/USD keeps highs around 1.2930/40
FXstreet.com (Barcelona) - The bloc currency remains in session highs in the boundaries of 1.2940 on Wednesday, as market participants are shifting their focus on the FOMC minutes and Bernanke’s testimony.
In light of Bernankes’s testimony before Congress, Sean Callow, Strategist at Westpac commented, “Volatility over the course of his appearance seems assured, as markets try to quickly decide whether Bernanke is trying to dampen talk of reducing QE some time soon, is affirming such a view or remaining non-committal. USD should gain in the latter two scenarios but we still expect the first outcome – Bernanke arguing that it is too soon to be confident that the economy is recovering sustainably”.
EUR/USD is now up 0.17% at 1.2928 with the next hurdle at 1.2943 (high May 15) followed by 1.3009 (MA21d) and finally 1.3030 (high May 14).
On the flip side, a breakdown of 1.2841 (low May 21) would aim for 1.2809 (low May 20) and then 1.2796 (low May 17).
In light of Bernankes’s testimony before Congress, Sean Callow, Strategist at Westpac commented, “Volatility over the course of his appearance seems assured, as markets try to quickly decide whether Bernanke is trying to dampen talk of reducing QE some time soon, is affirming such a view or remaining non-committal. USD should gain in the latter two scenarios but we still expect the first outcome – Bernanke arguing that it is too soon to be confident that the economy is recovering sustainably”.
EUR/USD is now up 0.17% at 1.2928 with the next hurdle at 1.2943 (high May 15) followed by 1.3009 (MA21d) and finally 1.3030 (high May 14).
On the flip side, a breakdown of 1.2841 (low May 21) would aim for 1.2809 (low May 20) and then 1.2796 (low May 17).