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1 Oct 2013
EUR/USD set for all-year highs? Offered above 1.3520
FXstreet.com (Chicago) - EUR/USD opened above the 1.35 mark in Asia after extending a new and steady climb. Amid uncertainty on US spending, experts expect the euro to strengthen if shutdown occurs targeting 1.37.
It’s October after all?
Despite holding on to hope, an inevitable shutdown is about to occur as no agreement has taken place in Washington hours away from the deadline. Obama said the “shutdown will have a very real economic impact on real people right away” earlier today on a speech addressing Congress in order to prevent a paralysis.
EUR/USD Technical Levels
In terms of price action the pair remains oscillating around 9-month highs with possibilities of reaching an all-year record if affairs in Washington are not taken care of. Above the EMA20, the pair trades at 1.3523 navigating between supports aligned at 1.3461 (September 23rd lows), 1.34 (August 27th highs) ahead of 1.3343 (September 17th lows) and the resistances set at 1.3564 (September 26th highs), 1.3631 (February 1st highs) followed by 1.3716 (January 24th highs). According to FXstreet analyst Valeria Bednarik, “technical studies had little to do in days like today, when fundamental noise is extremely loud: we are a few hours ahead of a technical default in the US that includes a partial government shutdown and 800,000 employees will have nowhere to go tomorrow. Risk sentiment prevailed all though this Monday, and will likely deepen on Tuesday, if the American leaders fail to reach an agreement. The EUR/USD surged on an early relief rally that was not enough to breach recent highs, and the pair enters Asian session trading right above the 1.3500 mark.”
It’s October after all?
Despite holding on to hope, an inevitable shutdown is about to occur as no agreement has taken place in Washington hours away from the deadline. Obama said the “shutdown will have a very real economic impact on real people right away” earlier today on a speech addressing Congress in order to prevent a paralysis.
EUR/USD Technical Levels
In terms of price action the pair remains oscillating around 9-month highs with possibilities of reaching an all-year record if affairs in Washington are not taken care of. Above the EMA20, the pair trades at 1.3523 navigating between supports aligned at 1.3461 (September 23rd lows), 1.34 (August 27th highs) ahead of 1.3343 (September 17th lows) and the resistances set at 1.3564 (September 26th highs), 1.3631 (February 1st highs) followed by 1.3716 (January 24th highs). According to FXstreet analyst Valeria Bednarik, “technical studies had little to do in days like today, when fundamental noise is extremely loud: we are a few hours ahead of a technical default in the US that includes a partial government shutdown and 800,000 employees will have nowhere to go tomorrow. Risk sentiment prevailed all though this Monday, and will likely deepen on Tuesday, if the American leaders fail to reach an agreement. The EUR/USD surged on an early relief rally that was not enough to breach recent highs, and the pair enters Asian session trading right above the 1.3500 mark.”