EUR/USD Managed To Break 1.2700
The euro rallied even as a draft report indicated 25 euro-area banks are set to fail a European Central Bank stress test
The single currency keeps pushing higher at the end of the week, lifting EUR/USD back to the vicinity of 1.2700 the figure.
EUR/USD trimming losses
The pair managed to break above the dullness surrounding 1.2650 so far, looking to regain the 1.2700 limestone and so extend the recovery after Wednesday’s sharp sell-off to sub-1.2620 levels. Bloomberg’s news regarding more than 20 European banks have failed the ECB’s stress tests acted as a catalyst against the backdrop of scarce relevant data (if any, at all), waking up investors ahead of the usual weekend lull. Chief FX Strategist Camilla Sutton at Scotiabank assessed “The medium term outlook continues to be bearish, as both fundamentals and flows work against the currency… For near-term traders, EUR feels somewhat range bound between its October 3rd low of 1.2501 and its October 15th high of 1.2886, searching for a catalyst”.
EUR/USD levels to consider
At the moment the pair is up 0.20% at 1.2672 with the immediate resistance at 1.2728 (10-d MA) ahead of 1.2740 (high Oct.22) and then 1.2840 (high Oct.21). On the downside, a break below 1.2614 (low Oct.23) would expose 1.2605 (low Oct.10) and finally 1.2583 (low Oct.7).