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3 Mar 2014
EUR/USD points to 1.3750
FXStreet (Edinburgh) - The selling interest is now gathering pace around the EUR, pushing the EUR/USD to test session lows near 1.3750.
EUR/USD weaker as risk aversion grows bigger
Tensions around the Russia-Ukraine situation continue to arise on Monday, accelerating the inflows to safe havens in detriment of riskier assets. Spot has been trading on the back footing since the very beginning of the session due to geopolitical risks in Crimea plus the soft prints from the Chinese manufacturing PMIs, weighing on sentiment despite PMIs in the euro area came in above expectations in February. In light of the next ECB meeting on Thursday, Analyst Richard Kelly at TD Securities assessed, “Our underlying message is that markets should not view the Feb CPI as decisive. The uncertainties remain high around this meeting, and… this may make shorting EURUSD into the rate decision attractive, especially if we trade back up to 1.3800”.
EUR/USD levels to watch
As of writing the pair is down 0.30% at 1.3761 with the next support at 1.3747 (low Mar.3) ahead of 1.3740 (10-d MA) and then 1.3694 (low Feb.28). On the upside, a breakout of 1.3793 (high Mar.3) would aim for 1.3825 (high 2014 Feb.28) and then 1.3894 (high 2013 Dec.27).
EUR/USD weaker as risk aversion grows bigger
Tensions around the Russia-Ukraine situation continue to arise on Monday, accelerating the inflows to safe havens in detriment of riskier assets. Spot has been trading on the back footing since the very beginning of the session due to geopolitical risks in Crimea plus the soft prints from the Chinese manufacturing PMIs, weighing on sentiment despite PMIs in the euro area came in above expectations in February. In light of the next ECB meeting on Thursday, Analyst Richard Kelly at TD Securities assessed, “Our underlying message is that markets should not view the Feb CPI as decisive. The uncertainties remain high around this meeting, and… this may make shorting EURUSD into the rate decision attractive, especially if we trade back up to 1.3800”.
EUR/USD levels to watch
As of writing the pair is down 0.30% at 1.3761 with the next support at 1.3747 (low Mar.3) ahead of 1.3740 (10-d MA) and then 1.3694 (low Feb.28). On the upside, a breakout of 1.3793 (high Mar.3) would aim for 1.3825 (high 2014 Feb.28) and then 1.3894 (high 2013 Dec.27).