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19 May 2014
EUR/USD firmer, aims for 1.3720
FXStreet (Edinburgh) - The shared currency is now picking up pace at the end of the US session on Monday, lifting the EUR/USD back to the 1.3720/25 region.
EUR/USD resilient above 1.3700
Spot managed to leave last week’s lows around the 1.3680 region and is currently looking to stabilize above the 1.3700 mark amidst anaemic docket in the euro bloc. There are no significant data releases until Wednesday with the FOMC minutes and the advanced PMI prints on Thursday, although Draghi’s promise of further ECB easing in June continues to weigh on the traders. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short-term technicals are bearish, most studies warn of further downside and the RSI at 38 leaves plenty of room before reaching oversold levels. We favour EUR-short positions, looking for a near term test down to the 200-d MA of 1.3628”.
EUR/USD relevant levels
At the moment the pair is up 0.15% at 1.3715 with the next resistance at 1.3732 (high May 15) followed by 1.3739 (100-d MA) and then 1.3771 (high May 13). On the flip side, a breakdown of 1.3685 (low May 16) would target 1.3648 (low May 15) and finally 1.3643 (low Feb.27).
EUR/USD resilient above 1.3700
Spot managed to leave last week’s lows around the 1.3680 region and is currently looking to stabilize above the 1.3700 mark amidst anaemic docket in the euro bloc. There are no significant data releases until Wednesday with the FOMC minutes and the advanced PMI prints on Thursday, although Draghi’s promise of further ECB easing in June continues to weigh on the traders. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short-term technicals are bearish, most studies warn of further downside and the RSI at 38 leaves plenty of room before reaching oversold levels. We favour EUR-short positions, looking for a near term test down to the 200-d MA of 1.3628”.
EUR/USD relevant levels
At the moment the pair is up 0.15% at 1.3715 with the next resistance at 1.3732 (high May 15) followed by 1.3739 (100-d MA) and then 1.3771 (high May 13). On the flip side, a breakdown of 1.3685 (low May 16) would target 1.3648 (low May 15) and finally 1.3643 (low Feb.27).