Sep
4
2010
4
2010
EUR/USD Eyes 1.30
The EUR/USD closed the trading week on a positive note and the currency pair is now eyeing its psychological 1.30 level as markets head into a relatively quiet week data-wise. The risk trade rallied across the board on Monday after U.S. headline employment data came in stronger than expected. Non-farm payrolls declined by -54k vs. -101k expected, fueling a continuation of the recent risk rally. Friday’s follow-through was encouraging and investors are suddenly becoming more comfortable with the risk trade. U.S. unemployment has been the main drag on bulls and signs of improvement were warmly received by investors. Meanwhile, the data wire will be relatively quiet around the globe on Monday, allowing investors to build on topside momentum originating from August lows. However, investors should still proceed with a slight air of caution since these markets are prone to sudden shifts in sentiment, as we’ve seen this last week. On the other hand, if conditions can continue to improve in the U.S., particularly in unemployment, then the EUR/USD may begin building the foundation of a more lasting uptrend.
Technically speaking, the EUR/USD faces technical barriers in the form of 8/18 and 7/20 highs along with the highly psychological 1.30 level. As for the downside, the EUR/USD has supports in the form of 9/2 and 8/16 lows. Additionally, the psychological 1.25 level could serve as a solid cushion should it be tested.
Present Price: 1.2895
Resistances: 1.2899, 1.2914, 1.2929, 1.2947, 1.2958, 1.2970
Supports: 1.2882, 1.2868, 1.2852, 1.2833, 1.2802, 1.2786
Psychological: 1.25, 1.30
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Posted by: Matthew Myers
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