We have updated our privacy policy and terms & conditions. Find out more here.
8
 

Euro Steady Against The Dollar

By ForexJun 13, 2014 02:18PM GMT Add a Comment
 
AA
+
-

The euro is steady against the U.S. dollar on Friday as disappointing data on consumer sentiment in the U.S. boosted demand for the dollar, while concerning about the violence in Iraq continues to exert pressure, say Forex experts.

The preliminary report of the University of Michigan said its index of consumer sentiment fell to 81.2 this month from 81.9 in May, whose figure was revised up from the previously projected 81.8. Analysts had expected the index to rise to 83.0 in June. Earlier on Friday, the official data showed that producer prices in the U.S. fell in May by 0.2%, confounding expectations for a gain of 0.1%, after a 0.6% increase in the previous month. Producer price index, excluding food and energy fell by 0.1% last month, compared with expectations of an increase by 0.1%, after rising in April by 0.5%.

Meanwhile, market sentiment remained under pressure after President Obama warned about possible military strikes on Iraq after Sunni Islamist uprising, which began to spread rapidly across the country. Later on Thursday, the Kurdish forces in the north took control of the city of Kirkuk, to protect it from the Islamists, say the Forex experts.

The single currency gained some support on Thursday after the release of the data, which showed that industrial production in the region increased by 0.8% in April, exceeding the projected increase of 0.4%. The March figure was revised down to 0.4% from a previously reported 0.3%.

EUR/USD formed a small local maximum

The price for the euro on June 13, as expected, formed a small local maximum, and it is likely that it has completed a local correction. Presumably, or have completed the formation of the first part of a pattern in the form of a 5-3 formation. If this assumption is true, then, any increase in the pair should be used to find an entry point to short positions. It is therefore recommended with the price increases to the level of 1,3575-1,3585 search terms to open short positions with the targets in the area of 1,3480-1,3450 and protective stop orders for losses place the level of 1.3630.

EUR/USD Hour Chart
EUR/USD Hour Chart

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/USD
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg