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EUR/USD remains limited by 1.2500

FXStreet (Edinburgh) - The single currency keeps the narrow range at the end of the Asian session on Wednesday, with EUR/USD meandering between 1.2460 and 1.2490 so far.

EUR/USD bounced off 1.2400

Spot is looking to extend the recent rebound from the boundaries of 1.2400 the figure, although it seems it will need a strong catalyst to break above the 1.2500 handle on a more sustainable basis. Ahead in the session, EMU’s Industrial Production for the month of September is due, with consensus expecting a monthly expansion of 0.7%. In spite of the recent knee jerk in the greenback, Senior Analyst Pernille Nielsen at Danske Bank commented, “The USD is consolidating as market events are light this week but we remain firmly of the view that the USD will strengthen further, particularly against currencies where central banks are expanding their balance sheets aggressively or can be expected to do so”.

EUR/USD key levels

The pair is now up 0.07% at 1.2484 with the first hurdle at 1.2494 (10-d MA) followed by 1.2499 (Tenkan Sen) and finally 1.2509 (high Nov.10). On the downside, a break below 1.2358 (low Nov.7) would expose 1.2342 (low Aug.21 2012) and then 1.2295 (low Aug.20 2012).

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