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14 May 2014
EUR/USD another attempt to 1.3720
FXStreet (Edinburgh) - Resilience seems to be the name of the game for the euro so far, with the EUR/USD treading water around the upper band of today’s range at 1.3715/20 so far.
EUR/USD well supported by 1.3700
Nothing of note in the euro area, as German consumer prices and industrial production in the euro bloc both matched consensus. In another tone, Buba’s J.Weidmann poured some cold water over recent comments regarding the implementation of easing measures in the euro area, stating that any new measure should be thoroughly studied and that nothing is decided yet. In the opinion of Tim Riddell, Head of Global Markets Research at ANZ, “last week’s price action has materially damaged the uptrend and raised the opposing potential that a top may have developed at 1.3995 and that EUR may now be poised for retracements back to 1.3520 (38.2%) if not 1.3375 (50%)”.
EUR/USD levels to consider
As of writing the pair is advancing 0.08% at 1.3714 with the next resistance at 1.3722 (daily cloud base) followed by 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, a break below 1.3689 (low May 13) would open the door to 1.3672 (low Apr.4) and then 1.3643 (low Feb.27).
EUR/USD well supported by 1.3700
Nothing of note in the euro area, as German consumer prices and industrial production in the euro bloc both matched consensus. In another tone, Buba’s J.Weidmann poured some cold water over recent comments regarding the implementation of easing measures in the euro area, stating that any new measure should be thoroughly studied and that nothing is decided yet. In the opinion of Tim Riddell, Head of Global Markets Research at ANZ, “last week’s price action has materially damaged the uptrend and raised the opposing potential that a top may have developed at 1.3995 and that EUR may now be poised for retracements back to 1.3520 (38.2%) if not 1.3375 (50%)”.
EUR/USD levels to consider
As of writing the pair is advancing 0.08% at 1.3714 with the next resistance at 1.3722 (daily cloud base) followed by 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, a break below 1.3689 (low May 13) would open the door to 1.3672 (low Apr.4) and then 1.3643 (low Feb.27).