14 Apr 2014
EUR/USD sidelined above 1.3800
FXStreet (Edinburgh) - The EUR/USD is now looking to extend the congestion pattern around 1.3820/30, as US markets are drawing to the close.
EUR/USD focus on China, ZEW
The EUR would remain under pressure however, as markets participants would focus their attention on tomorrow’s Chinese data (Money Supply, New Loans) ahead of the German ZEW Survey. Consensus expects Economic Sentiment to ease a tad to 45.0 in April from 46.6 and Current Situation to improve to 51.8 from 51.3. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “EUR’s gap lower is rare and warns of a rapid shift to the downside; however other technicals have yet to confirm. In this environment today’s close will prove important; a break below 1.38 would be bearish but a close above today’s open at 1.3843 would be encouraging for bulls”.
EUR/USD levels to watch
As of writing, the pair is losing 0.47% at 1.3819 with the next support at 1.3808 (low Apr.14) ahead of 1.3806 (21-d MA) and finally 1.3780 (low Apr.9). On the upside, a breakout of 1.3863 (high Apr.14) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19).
EUR/USD focus on China, ZEW
The EUR would remain under pressure however, as markets participants would focus their attention on tomorrow’s Chinese data (Money Supply, New Loans) ahead of the German ZEW Survey. Consensus expects Economic Sentiment to ease a tad to 45.0 in April from 46.6 and Current Situation to improve to 51.8 from 51.3. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “EUR’s gap lower is rare and warns of a rapid shift to the downside; however other technicals have yet to confirm. In this environment today’s close will prove important; a break below 1.38 would be bearish but a close above today’s open at 1.3843 would be encouraging for bulls”.
EUR/USD levels to watch
As of writing, the pair is losing 0.47% at 1.3819 with the next support at 1.3808 (low Apr.14) ahead of 1.3806 (21-d MA) and finally 1.3780 (low Apr.9). On the upside, a breakout of 1.3863 (high Apr.14) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19).