According to a lot of market sentiment Friday we were in the middle of a squeeze up to 1.3500. It hasn’t take long for that immediate bubble to be burst as the euro has been dunked under 1.3400 once again.
The good old 1.3380/85 level is support once more and 1.3400 is going to be hard work once again without any data or tape bomb injections today.
EUR/USD Weekly chart 11 08 2014
The 100 wma has still been holding up below but now the 200 wma at 1.3414 is covering the topside. Intraday we’re between a rock and a hard place but the force remains with the sellers who are not letting the price run too far away from them. 1.3440/45 still remains one of the stronger levels above then 1.3480, while 1.3300 is the bigger number to watch from 1.3345/50 below.
A big player in the fortunes on EUR/USD has been EUR/GBP and the battle of 0.8000. Support is seen at 0.7970, though with cable not looking like it wants to bounce anytime soon the big figure is going to stay in focus. If it goes then that could give the euro the kick against the dollar it’s looking for.