EUR/USD: Hell about to break lose in 24 hoursAll hell is about to break lose in the US, and Republicans and Democrats agree in just one matter: the other side’s demands are unreasonable, and will be the one to blame, if the government shuts down next Tuesday. This is the main theme across the board, and will likely do little favor to the greenback, unless both parties come to an agreement over the next 24 hours. Keep in mind, if the US government actually fails to reach an agreement, all scheduled fundamental data will be suspended, including Nonfarm payrolls on Friday. With the US currency already under pressure across the board, the EUR/USD does not have it easy: Italian government is also nearing collapse as all five ministers in Berlusconi’s part have resigned for the government coalition. The country faces the need of forge a fresh coalition or end up with new elections. The EUR/USD gaped lower early opening and trades right below 1.3500, after failing to take over 1.3570 resistance past Friday. With a double roof at mentioned high, the pair has so far managed to bottom around 1.3460, where the neckline of the figure stands. Technically bearish, a break below the level should signal a 100 pips slide for today, although a recovery back above 1.3530 area, should deny the possibility of a downward corrective movement, and see a new challenge of mentioned highs. Support levels: 1.3490 1.3460 1.3420 Resistance levels: 1.3535 1.3570 1.3615
Posted on: Mon, 30 Sep 2013 03:14:36 +0000
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