4 Apr 2014
EUR/USD clings to 1.3700
FXStreet (Edinburgh) - The EUR/USD is finishing another week in red figures, extending the correction lower from 2014 peaks around 1.3963 posted in mid-March.
EUR/USD in multi-week lows
A report citing the ECB is considering the implementation of some form of quantitative easing in the euro area kept buyers at bay in the European afternoon, extending the sedative effects post-March Payrolls in the US economy (192K act. vs. 200K exp.). “EUR is weak and technicals warn of further downside risk. Spot is flirting with a break below the 100-d MA at 1.3689 but so far this level has held as support… We hold a year-end EUR target of 1.30; expecting diverging monetary policy between the US and Europe to be the core driver of EUR weakness”, noted Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to consider
The pair is now losing 0.12% at 1.3702 with the next support at 1.3685 (daily cloud top) followed by 1.3672 (low Apr.4) and finally 1.3647 (daily cloud base). On the upside, a break above 1.3732 (high Apr.4) would target 1.3808 (high Apr.3) en route to 1.3820 (high Apr.2).
EUR/USD in multi-week lows
A report citing the ECB is considering the implementation of some form of quantitative easing in the euro area kept buyers at bay in the European afternoon, extending the sedative effects post-March Payrolls in the US economy (192K act. vs. 200K exp.). “EUR is weak and technicals warn of further downside risk. Spot is flirting with a break below the 100-d MA at 1.3689 but so far this level has held as support… We hold a year-end EUR target of 1.30; expecting diverging monetary policy between the US and Europe to be the core driver of EUR weakness”, noted Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to consider
The pair is now losing 0.12% at 1.3702 with the next support at 1.3685 (daily cloud top) followed by 1.3672 (low Apr.4) and finally 1.3647 (daily cloud base). On the upside, a break above 1.3732 (high Apr.4) would target 1.3808 (high Apr.3) en route to 1.3820 (high Apr.2).