25 Mar 2014
EUR/USD: more than words - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst comments that EUR/USD is easing down towards 1.3800 following Bundesbank President Weidmann recent statement.
Key Quotes
“(He) said negative rates could counter the impact of the strong euro and that QE is not out of the question. Indeed, the European Central Bank is concerned over the currency strength, as the higher the currency moves, the slow will be the economic recovery in the EU.Nevertheless, usually takes more than just words for authorities to be able to change market mind in term.”
“Technically, the 4 hours chart shows price testing a flat 20 SMA, currently offering support around the 1.3800 figure, while indicators lost upward potential, and turned lower still in positive territory.200 EMA converges with the 38.2% retracement of its latest bullish run in the 1.3780 area which is the support to break to confirm another run lower, eyeing then 1.3740 in the short term.”
“Daily high stands at 1.3846, a few pips below the 23.6% retracement of the same rally at 1.3850, key resistance level as only above the pair will be ready to resume the bullish trend.”
Key Quotes
“(He) said negative rates could counter the impact of the strong euro and that QE is not out of the question. Indeed, the European Central Bank is concerned over the currency strength, as the higher the currency moves, the slow will be the economic recovery in the EU.Nevertheless, usually takes more than just words for authorities to be able to change market mind in term.”
“Technically, the 4 hours chart shows price testing a flat 20 SMA, currently offering support around the 1.3800 figure, while indicators lost upward potential, and turned lower still in positive territory.200 EMA converges with the 38.2% retracement of its latest bullish run in the 1.3780 area which is the support to break to confirm another run lower, eyeing then 1.3740 in the short term.”
“Daily high stands at 1.3846, a few pips below the 23.6% retracement of the same rally at 1.3850, key resistance level as only above the pair will be ready to resume the bullish trend.”