EURUSD above 1.3500 for first time since December 2011

by on January 30, 2013 8:48 am BST

The euro strengthened above $1.35 for the first time since December 2011 before a report forecast to show economic confidence in the region improved this month.

The 17-nation currency advanced for a second day against the dollar before the Federal Open Market Committee issues its policy statement today. An index of executive and consumer sentiment in the 17-nation euro area rose to 88.2 this month from 87 in December, the European Commission will say today, according to a Bloomberg News survey. South Korea’s won weakened as a government minister said the country should consider taxes on currency trading to limit “speculative” inflows of capital.

“The U.S. economy continues to be weak,” said Peter Dragicevich, a currency economist at Commonwealth Bank of Australia in Sydney. “That will just reinforce the perception in the market that the Fed’s asset purchases will continue for a while yet, and that will weaken the dollar.”

The euro gained 0.1 percent to $1.3509 at 7:39 a.m. London time after rising to $1.3515, the strongest since Dec. 2, 2011. The common currency advanced 0.4 percent to 122.89 yen. Japan’s currency dropped 0.3 percent to 90.96 per dollar.

Pivot Woodie Fibonacci
Resistance 3 1.3601 1.3611 1.3549
Resistance 2 1.3549 1.3554 1.3517
Resistance 1 1.3518 1.3528 1.3498
Pivot 1.3466 1.3471 1.3466
Support 1 1.3435 1.3445 1.3434
Support 2 1.3383 1.3388 1.3415
Support 3 1.3352 1.3362 1.3383