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14 May 2014
EUR/USD back to test 1.3700… again
FXStreet (Edinburgh) - The EUR/USD is now extending the correction southwards, putting once again the 1.3700 support to the test.
EUR/USD clinging to 1.3700
After dropping around three big-figures post-Draghi’s presser, spot is battling to keep the trade around the 1.3700 handle against a backdrop of rumours and counter-rumours regarding the potential easing measures to be announced (or not) in June. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short term technicals are mixed and turning increasingly bearish as spot flirts with a break below 1.3700. The MACD is warning of further downside, momentum is strong and spot has broken through several layers of support. The next level is 1.3700, a break of this would open a test down 1.3600”. Next on tap for EUR traders will be the EMU’s advanced gauge of the CPI during April, estimated at 0.7% on a yearly basis ahead of the Q1 GDP figures (0.4% QoQ).
EUR/USD levels to consider
As of writing the pair is advancing 0.08% at 1.3714 with the next resistance at 1.3722 (daily cloud base) followed by 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, a break below 1.3689 (low May 13) would open the door to 1.3672 (low Apr.4) and then 1.3643 (low Feb.27).
EUR/USD clinging to 1.3700
After dropping around three big-figures post-Draghi’s presser, spot is battling to keep the trade around the 1.3700 handle against a backdrop of rumours and counter-rumours regarding the potential easing measures to be announced (or not) in June. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short term technicals are mixed and turning increasingly bearish as spot flirts with a break below 1.3700. The MACD is warning of further downside, momentum is strong and spot has broken through several layers of support. The next level is 1.3700, a break of this would open a test down 1.3600”. Next on tap for EUR traders will be the EMU’s advanced gauge of the CPI during April, estimated at 0.7% on a yearly basis ahead of the Q1 GDP figures (0.4% QoQ).
EUR/USD levels to consider
As of writing the pair is advancing 0.08% at 1.3714 with the next resistance at 1.3722 (daily cloud base) followed by 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, a break below 1.3689 (low May 13) would open the door to 1.3672 (low Apr.4) and then 1.3643 (low Feb.27).