FX.co ★ EUR/USD. Forecast for March 13, 2013

Yesterday it was known that the European Union supports the idea to stop pressing Spain in terms of severe austerity measures. Amid the information the euro rose.

However, the possible reason why the markets grew is the possibility of war between North Korea and South Korea. Tension continued to escalate on Tuesday as North Korea intensified threats against South Korea. The regime has cut off an emergency hotline with the South and declared the end of nonaggression pacts, in protest of joint military drills of the two allies. Prices on gold, industrial metals, and oil grew.

Today at 14:00 GMT+4 Industrial Production in Eurozone in January is published. It is expected to be -0.1% against 0.7% in December. At 16:30 GMT+4 data on US Advance Retail Sales in February is published. It is forecast to be 0.5% vs. 0.1% in January. Retail Sales Ex-Auto is expected to rise 0.5% against 0.2% in January. At 18:00 GMT+4 data on trading stock in January is released, forecast 0.5% against 0.1% in December. If data on Advance Retail sales is strong, then we can expect trading stock will be better than expected (i.e. lower than the forecast).

From the technical point of view, we expect the price continues growing after the area of resistance is broken 1.3053/62 with the first target 1.3133 and then 1.3270, the area of intersection of trendlines on the daily chart.