EUR/USD. Forecast for August 19, 2013

On Friday, the investors almost have not shown any reaction to the drop of data on Current Account and Trade Balance in the Eurozone. Using the inertia, the euro moved upwardly. Probably mass sell of US bonds influenced it. US data on building was a little lower than expected; however, it was better than earlier. The euro dropped 20 points.

Today no data on the Eurozone and the US is published. We expect the euro will continue moving downwardly beforw the major events on Wednesday when Minutes of FOMC meeting are published and on Thursday when PMI Manufacturing in the Eurozone is published.

From the technical point of view, when the first testing level 1.3310 is broken, the price has to attack the zone of consolidation of 1.3292-1.3000, coinciding with support of Kruzenshtern line (blue sliding) on the H4, after it the first target 1.3265 (the low of August 7) opens, when the level is broken the second target is open, the range of local lows on the H4, 1.3230/38.