11 Apr 2014
EUR/USD looks to regain 1.3900
FXStreet (Edinburgh) - The single currency is prolonging its bounce off 1.3870/65, lifting the EUR/USD back to the boundaries of 1.3900 the figure.
EUR/USD boosted by risk, ECB
Better risk-sentiment throughout the week plus the recent ECB inaction was behind the current EUR bullish momentum, looking to regain the mid-1.3900s (post-FOMC gathering). Looking ahead, next week’s docket in the euro area brings in the key final inflation figures during March (Core 0.8% YoY exp.) and February’s Current Account, putting the EUR rally to the test. “We remain of the view that the EUR is unlikely to yield ground to the USD easily in the coming months and suggest that the risk of further monetary policy easing from the ECB does not automatically mean that the EUR will fall from grace. Based on the view that flows will continue to offer the EUR good support, we expect EUR/USD to remain in the 1.37-1.39 area in the weeks ahead and forecast only a modest move lower in to the EUR/USD 1.34 area on a 6 mth view”
EUR/USD levels to watch
As of writing the pair is advancing 0.07% at 1.3896 with the next resistance at 1.3906 (high Apr.11) ahead of 1.3935 (high Mar.19) and 1.3967 (2014 high Mar.13). On the flip side, a breakdown of 1.3864 (low Apr.11) would target 1.3836 (low Apr.10) en route to 1.3812 (21-d MA).
EUR/USD boosted by risk, ECB
Better risk-sentiment throughout the week plus the recent ECB inaction was behind the current EUR bullish momentum, looking to regain the mid-1.3900s (post-FOMC gathering). Looking ahead, next week’s docket in the euro area brings in the key final inflation figures during March (Core 0.8% YoY exp.) and February’s Current Account, putting the EUR rally to the test. “We remain of the view that the EUR is unlikely to yield ground to the USD easily in the coming months and suggest that the risk of further monetary policy easing from the ECB does not automatically mean that the EUR will fall from grace. Based on the view that flows will continue to offer the EUR good support, we expect EUR/USD to remain in the 1.37-1.39 area in the weeks ahead and forecast only a modest move lower in to the EUR/USD 1.34 area on a 6 mth view”
EUR/USD levels to watch
As of writing the pair is advancing 0.07% at 1.3896 with the next resistance at 1.3906 (high Apr.11) ahead of 1.3935 (high Mar.19) and 1.3967 (2014 high Mar.13). On the flip side, a breakdown of 1.3864 (low Apr.11) would target 1.3836 (low Apr.10) en route to 1.3812 (21-d MA).