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4 Jun 2013
EUR/USD eases to 1.3070 on US trade deficit
FXstreet.com (Barcelona) - The single currency kept the unusual narrow range on Tuesday, after the US trade deficit widened during April.
The deficit rose to $40.29 billion, contrasting with March’s $37.13 billion although better than the forecasts at $41.0 billion. “We still prefer to look for opportunities to sell short-term EUR/USD rallies because the broader technical picture remains EUR-negative. The market staged a strong, bearish reversal from the 1.37 area in February, signifying a major peak in place”, suggested S.Osborne and G.Moore, FX Strategists at TD Securities.
As of writing, EUR/USD is down 0.02% at 1.3072 with support levels at 1.3037 (MA200d) followed by 1.2961 (MA21d) and then 1.2956 (low Jun.3). On the upside, a breakout of 1.3108 (high Jun.3) would open the door to 1.3194 (high May 8) and then 1.3243 (high May 1).
The deficit rose to $40.29 billion, contrasting with March’s $37.13 billion although better than the forecasts at $41.0 billion. “We still prefer to look for opportunities to sell short-term EUR/USD rallies because the broader technical picture remains EUR-negative. The market staged a strong, bearish reversal from the 1.37 area in February, signifying a major peak in place”, suggested S.Osborne and G.Moore, FX Strategists at TD Securities.
As of writing, EUR/USD is down 0.02% at 1.3072 with support levels at 1.3037 (MA200d) followed by 1.2961 (MA21d) and then 1.2956 (low Jun.3). On the upside, a breakout of 1.3108 (high Jun.3) would open the door to 1.3194 (high May 8) and then 1.3243 (high May 1).