July 31, 2013 (4:15 pm) – The EURUSD pair had been on an uptrend at least on its 1-hour chart. Recently, though, it has been trading within a rectangle pattern. As you can see, the fiber has swung between its resistance at around 1.3290 – 1.3300 and its support at 1.3240. Now the euro may weaken again against the US dollar as the pair approaches its resistance area. Selling at around 1.3300 may send the pair down towards the lower end of the rectangle while a successful move above it may send it to an upside target of around 1.3360.
Note also that the currency market especially the USD will likely be moved by the major economic events in the US tonight. Watch out for the ADP employment report at 8:15 pm which is seen to print 179,000 new hirings in June from 188,000 in May. The US’s second quarter advance GDP result will also be on deck at 8:30 pm. The US economy is seen to have expanded by 1.1% q/q in the 2Q of 2013 from a 1.8% growth in 1Q. The highlight of the night will be on the FOMC interest rate decision at 2:00 am. Investors will see how the Fed plans to reduce its bond purchases in the coming months.
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