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14 Mar 2014
EUR/USD clings to 1.3900
FXStreet (Edinburgh) - The EUR/USD is flat-lining around 1.3900 the figure at the end of the trading week, keeping the positive ground and closing in a firm footing.
EUR/USD focus on Crimea
The next big event for the global markets will be the referendum in Crimea on Sunday, with consensus already anticipating a vote favouring the scission of the peninsula from Ukraine. Moving towards Monday’s docket, the attention would turn to the final EMU inflation figures for the month of February (0.8% YoY, 0.4% MoM exp.) and the speech by Budesbank’s J.Weidmann. In the opinion of Eric Theoret, Currency Strategy at Scotiabank, the short-term technicals remain bullish, adding, “momentum indicators are bullish but moderating. The RSI appears to be turning over, now less bullish at 63, and showing a multi-month negative divergence from EUR given its continued gains, as RSI has moderated over the same time period. Near term focus is 9 day MA at 1.3845”.
EUR/USD key levels
The pair is now up 0.28% at 1.3907 with the next resistance at 1.3967 (2014 high Mar.13) followed by 1.4000 (psychological level) and then 1.4172 (high Oct.31 2011). On the flip side, a breakdown of 1.3846 (low Mar.13) would target 1.3843 (low Mar.12) en route to 1.3834 (low Mar.11).
EUR/USD focus on Crimea
The next big event for the global markets will be the referendum in Crimea on Sunday, with consensus already anticipating a vote favouring the scission of the peninsula from Ukraine. Moving towards Monday’s docket, the attention would turn to the final EMU inflation figures for the month of February (0.8% YoY, 0.4% MoM exp.) and the speech by Budesbank’s J.Weidmann. In the opinion of Eric Theoret, Currency Strategy at Scotiabank, the short-term technicals remain bullish, adding, “momentum indicators are bullish but moderating. The RSI appears to be turning over, now less bullish at 63, and showing a multi-month negative divergence from EUR given its continued gains, as RSI has moderated over the same time period. Near term focus is 9 day MA at 1.3845”.
EUR/USD key levels
The pair is now up 0.28% at 1.3907 with the next resistance at 1.3967 (2014 high Mar.13) followed by 1.4000 (psychological level) and then 1.4172 (high Oct.31 2011). On the flip side, a breakdown of 1.3846 (low Mar.13) would target 1.3843 (low Mar.12) en route to 1.3834 (low Mar.11).