26 Mar 2014
EUR/USD dips below 1.3800
FXStreet (Edinburgh) - The single currency remains in the red territory despite the upbeat sentiment in the risk-on space, taking the EUR/USD to levels sub-1.3800 on Wednesday.
EUR/USD can’t get traction
Spot is unable to pick up pace so far, keeping the trade in the proximities of the 1.3800 handle. Data-wise, the German Gfk Consumer Confidence survey came in at 8.5, in line with forecasts, although markets practically ignored the release. Across the pond, Durable Goods Orders and services PMI gauged by Markit would grab all the attention. According to Sverre Holbek, Analyst at Danske Bank, “The euro gained support last night following two relatively hawkish speeches from Draghi and Bundesbank President Weidmann… it does look like the ECB is likely to play its usual ‘wait and see’ game when it comes to further monetary easing. This is actually one of the main factors behind our 3M call for a higher EUR/USD towards 1.42”.
EUR/USD levels to watch
The pair is now losing 0.24% at 1.3792 with the immediate support at 1.3785 (low Mar.25) followed by 1.3760 (low Mar.24) and then 1.3749 (low Mar.20). On the flip side, a breakout of 1.3848 (high Mar.25) would open the door to 1.3853 (10-d MA) and finally 1.3877 (high Mar.24).
EUR/USD can’t get traction
Spot is unable to pick up pace so far, keeping the trade in the proximities of the 1.3800 handle. Data-wise, the German Gfk Consumer Confidence survey came in at 8.5, in line with forecasts, although markets practically ignored the release. Across the pond, Durable Goods Orders and services PMI gauged by Markit would grab all the attention. According to Sverre Holbek, Analyst at Danske Bank, “The euro gained support last night following two relatively hawkish speeches from Draghi and Bundesbank President Weidmann… it does look like the ECB is likely to play its usual ‘wait and see’ game when it comes to further monetary easing. This is actually one of the main factors behind our 3M call for a higher EUR/USD towards 1.42”.
EUR/USD levels to watch
The pair is now losing 0.24% at 1.3792 with the immediate support at 1.3785 (low Mar.25) followed by 1.3760 (low Mar.24) and then 1.3749 (low Mar.20). On the flip side, a breakout of 1.3848 (high Mar.25) would open the door to 1.3853 (10-d MA) and finally 1.3877 (high Mar.24).