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18 Feb 2014
EUR/USD higher, eyes 1.3750
FXStreet (Edinburgh) - Softer-than-expected data from the US economy is now boosting the EUR/USD to test fresh 1-month highs near 1.3750 on Tuesday.
EUR/USD stronger after NY Fed data
According to the New York Federal Reserve Bank, the regional manufacturing index dropped below estimates to 4.48 for the month of February, propelling spot to print new 1-month high in the vicinity of 1.3750. “Weak credit growth and low inflation remain concerns for policy makers and we think that further policy action from the ECB to address these issues still cannot be fully excluded as a risk in the next few months… We still rather think the broader risk in EURUSD is lower and that gains (to the upper end of the recent trading range—1.37/1.38) are to be faded”, assessed Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
At the moment the pair is gaining 0.27% at 1.3742 with the next resistance at 1.3776 (2014 high Jan.2) and then 1.3800 (psychological level). On the downside, a breach of 1.3692 (daily cloud top) would aim for 1.3685 (low Feb.17) and finally 1.3674 (low Feb.14).
EUR/USD stronger after NY Fed data
According to the New York Federal Reserve Bank, the regional manufacturing index dropped below estimates to 4.48 for the month of February, propelling spot to print new 1-month high in the vicinity of 1.3750. “Weak credit growth and low inflation remain concerns for policy makers and we think that further policy action from the ECB to address these issues still cannot be fully excluded as a risk in the next few months… We still rather think the broader risk in EURUSD is lower and that gains (to the upper end of the recent trading range—1.37/1.38) are to be faded”, assessed Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
At the moment the pair is gaining 0.27% at 1.3742 with the next resistance at 1.3776 (2014 high Jan.2) and then 1.3800 (psychological level). On the downside, a breach of 1.3692 (daily cloud top) would aim for 1.3685 (low Feb.17) and finally 1.3674 (low Feb.14).