Monday, November 10, 2014

$EUR/USD still below 1.2500

The common currency remains in sub-1.2500 levels on Monday, with $EUR/USD meandering around 1.2480/85 so far.

$EUR/USD lifted by Sentix

The pair is picking up pace after the Investor Confidence gauged by the Sentix index in the euro area bettered to -11.9 for the month of November, surpassing both forecasts and October’s reading. Previously, second-tier data in the region showed worrisome figures from the Italian industrial sector, with Industrial Production contracting 0.9% inter-month and 2.9% on a yearly basis. Lack of further events and releases in the euro bloc will leave spot to the mercy of the ampler risk trends, at least until the release of the Fed’s Labour Market Conditions Index (LMCI), followed by Yellen to gauge the current situation of the US labour market. 

$EUR/USD levels to watch

The pair is now up 0.29% at 1.2490 with the next resistance at 1.2520 (200-h MA) ahead of 1.2533 (high Nov.6) and finally 1.2577 (high Nov.4). On the flip side, a break below 1.2358 (low Nov.7) would expose 1.2342 (low Aug.21 2012) and then 1.2295 (low Aug.20 2012).