20 Mar 2014
EUR/USD step by step, eyes on 1.3780
FXStreet (Edinburgh) - The single currency is still submerged in the red territory, with the EUR/USD now creeping back to the 1.3780 level, albeit at a snail pace.
EUR/USD muted on US data
The pair largely ignored the US docket today, where both Initial Claims and Existing Home Sales missed estimates while the Philly Fed survey came in above expectations. In the opinion of Rob Carnell, Analyst at ING Bank NV, “If we see a similar improvement in the manufacturing ISM, then market expectations that the US economy is back in growth mode will firm up, and lift US Treasury yields. With recent Fed suggestions that Fed funds might rise sooner than had been indicated, it could well be the front end of the yield curve that begins to show the most movement, helping to firm the USD”. With no further data releases in the euro area, traders turn their attention to tomorrow’s EMU’s Current Account numbers and the advance result of March’s Consumer Confidence.
EUR/USD key levels
The pair is now retreating 0.37% at 1.3782 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).
EUR/USD muted on US data
The pair largely ignored the US docket today, where both Initial Claims and Existing Home Sales missed estimates while the Philly Fed survey came in above expectations. In the opinion of Rob Carnell, Analyst at ING Bank NV, “If we see a similar improvement in the manufacturing ISM, then market expectations that the US economy is back in growth mode will firm up, and lift US Treasury yields. With recent Fed suggestions that Fed funds might rise sooner than had been indicated, it could well be the front end of the yield curve that begins to show the most movement, helping to firm the USD”. With no further data releases in the euro area, traders turn their attention to tomorrow’s EMU’s Current Account numbers and the advance result of March’s Consumer Confidence.
EUR/USD key levels
The pair is now retreating 0.37% at 1.3782 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).