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25 Feb 2014
EUR steadied and rides 1.3745/55
FXStreet (Guatemala) - After a turbulent burst of action earlier, the unit has steadied after a bounce back into the 1.3740/60 brackets.
The Euro is supported on the improving economic growth outlook in Germany as well as a minor adjustment to the inflationary conditions in the EZ, which are easing pressures for the ECB to take action just yet. In the meantime, we looked to the US earlier for some guidance there from the Consumer Confidence data that arrived as a disappointing number. The data for February read 78.1 vs 80.0 expected and 79.4 previous. The pair dropped soon after the release, yet to be fully explained but perhaps on risk aversion, but quickly gathered a rally from demand back to previous territory. The move wasn’t large enough to sustain a new short term bearish trend and technically, EUR/USD continues to stall just ahead of the 1.3805/78.6% retracement, and has done so for the past 5 trading days now, as noted by Karen Jones, chief economist for Commerzbank. “A break below 1.3685 is needed to alleviate upside pressure and signal a slide back to the 1.3562, 12th February low and then the 1.3517 3 month support line”.
EUR/USD Levels
The 20 DMA is 1.3640, the 50 DMA is 1.3651 and the 200 DMA is 1.3423. RSI (14) reads 53.64. Supports are ascending from 1.3658, 1.3674, 1.3681 and 1.3702. Spot is 1.3745 while resistances are 1.3748, 1.3776, 1.3795 and 1.3819.
The Euro is supported on the improving economic growth outlook in Germany as well as a minor adjustment to the inflationary conditions in the EZ, which are easing pressures for the ECB to take action just yet. In the meantime, we looked to the US earlier for some guidance there from the Consumer Confidence data that arrived as a disappointing number. The data for February read 78.1 vs 80.0 expected and 79.4 previous. The pair dropped soon after the release, yet to be fully explained but perhaps on risk aversion, but quickly gathered a rally from demand back to previous territory. The move wasn’t large enough to sustain a new short term bearish trend and technically, EUR/USD continues to stall just ahead of the 1.3805/78.6% retracement, and has done so for the past 5 trading days now, as noted by Karen Jones, chief economist for Commerzbank. “A break below 1.3685 is needed to alleviate upside pressure and signal a slide back to the 1.3562, 12th February low and then the 1.3517 3 month support line”.
EUR/USD Levels
The 20 DMA is 1.3640, the 50 DMA is 1.3651 and the 200 DMA is 1.3423. RSI (14) reads 53.64. Supports are ascending from 1.3658, 1.3674, 1.3681 and 1.3702. Spot is 1.3745 while resistances are 1.3748, 1.3776, 1.3795 and 1.3819.