9 Dec 2013
EUR/USD retreats from 1.3730
FXstreet.com (Edinburgh) - The shared currency remains on a firm tone on Monday, now lifting the EUR/USD to the proximity of 1.3730.
EUR/USD bid despite Sentix
The bullish sentiment surrounding the bloc currency remains intact despite the EMU’s Sentix index falling to 8 for the month of December, missing forecasts at 10.4 and down from the previous month at 9.3. Next on tap will be the German Industrial Production figures, with market consensus expecting a monthly expansion of 0.8% during October. “We now see EUR/USD as neutral short term though the underlying premise for maintaining a negative posture on the pair is still very much intact. Growth momentum in the Eurozone remains too weak to truly dispel disinflation/deflation risk. As such further EUR-negative ECB policy easing remains on the cards. The 1.38 area should be strong resistance near term”, suggested the research team at Westpac Global Strategy Group.
EUR/USD key levels
At the moment the pair is up 0.10% at 1.3715 and a break above 1.3748 (high Dec.9) would expose 1.3787 (high Oct.30) and finally 1.3818 (high Oct.28). On the flip side, the initial support aligns at 1.3620 (low Dec.6) followed by 1.3615 (MA10d) ahead of 1.3547 (MA21d).
EUR/USD bid despite Sentix
The bullish sentiment surrounding the bloc currency remains intact despite the EMU’s Sentix index falling to 8 for the month of December, missing forecasts at 10.4 and down from the previous month at 9.3. Next on tap will be the German Industrial Production figures, with market consensus expecting a monthly expansion of 0.8% during October. “We now see EUR/USD as neutral short term though the underlying premise for maintaining a negative posture on the pair is still very much intact. Growth momentum in the Eurozone remains too weak to truly dispel disinflation/deflation risk. As such further EUR-negative ECB policy easing remains on the cards. The 1.38 area should be strong resistance near term”, suggested the research team at Westpac Global Strategy Group.
EUR/USD key levels
At the moment the pair is up 0.10% at 1.3715 and a break above 1.3748 (high Dec.9) would expose 1.3787 (high Oct.30) and finally 1.3818 (high Oct.28). On the flip side, the initial support aligns at 1.3620 (low Dec.6) followed by 1.3615 (MA10d) ahead of 1.3547 (MA21d).