Forex: EUR/USD remains capped by 1.3075

FXstreet.com (Córdoba) - The euro is once again struggling with the 1.3075 resistance area, which has been capping upside attempts this week ahead of the release of the US CPI data.

EUR/USD has risen over 150 pips from yesterday's lows, underpinned by the risk-on tone in financial markets, although it has been unable to overcome the 1.3075 level so far. At time of writing, EUR/USD is trading at 1.3060, recording a 0.4% gain on Friday.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com, notes that EUR/USD broke above a descendant trendline coming from 1.3710, today at 1.3050. "The pair is still well below the 23.6% retracement of its latest bearish leg, around 1.3100 and immediate resistance. Above this last the pair may extend up to 1.3150/60 static resistance area", says Bednarik. "Back below 1.3020, the upside will be denied, with 1.2950/80 area then back at sight".

Mar 15, 2013

Forex: GBP/USD falters around 1.5155/60

The upside in the sterling is running out of steam in the area of 1.5155/60 on Friday, as the buying interest seems to be taking a breather....

Forex Flash: More LTRO repayment, new Italian Parliament and Cyprus today – TD Securities

From the Euro area today, TD Securities expect another sub €10bn repayment in the 3-year LTROs, “but unless we see a significant upside surprise, the announcement today and over coming weeks is likely to have little market impact”. Also, the new Italian parliament is sworn in today, “where the negotiations toward forming a workable coalition begin”. “The President next week begins to sit down with parties on forming a government and the Chamber of Deputies and Senate discuss naming a President to head each House, so headline risk once again returns, while it is still likely it takes at least two weeks at the earliest before we may get close to forming a government”, wrote analyst Tim Davis.