1 May 2014
EUR/USD pilling up bids but needs confirmation
FXStreet (Guatemala) - EUR/USD has been building on the rally seen in Europe and these bids still coming in keep the sideways channel formed between 1.3860/75 on a bullish tone.
EUR/USD rallied overnight away from the lows on the 1.38 handle and is testing the upside yet again here in Asia but it is failing without the bulls that are fully committed based upon the upbeat circumstances of the US economy overnight. In the US session, EUR/USD was firm on the back of the inflation data in the EZ in Europe, rising in April vs March when markets took that as a relief for the ECB. However, data in the ADP report and Chicago PMI results were bullish and the dollar defended its ground despite the disappointing Q1 GDP numbers coming with a small rise in Q1 of just 0.1%, far worse than expected. The Fed then tapered by $10B and noted that activity had picked up recently.
EUR/USD Levels
The 20 DMA is 1.3808, the 50 DMA is 1.3803 and the 200 DMA is 1.3591. RSI (14) reads 63.01. Supports are ascending from 1.3738, 1.3762,1.3785, 1.3791, 1.3830 and 1.3854. Spot is currently 1.3865 while key resistance is placed at 1.3882 and 1.3906 (April high).
EUR/USD rallied overnight away from the lows on the 1.38 handle and is testing the upside yet again here in Asia but it is failing without the bulls that are fully committed based upon the upbeat circumstances of the US economy overnight. In the US session, EUR/USD was firm on the back of the inflation data in the EZ in Europe, rising in April vs March when markets took that as a relief for the ECB. However, data in the ADP report and Chicago PMI results were bullish and the dollar defended its ground despite the disappointing Q1 GDP numbers coming with a small rise in Q1 of just 0.1%, far worse than expected. The Fed then tapered by $10B and noted that activity had picked up recently.
EUR/USD Levels
The 20 DMA is 1.3808, the 50 DMA is 1.3803 and the 200 DMA is 1.3591. RSI (14) reads 63.01. Supports are ascending from 1.3738, 1.3762,1.3785, 1.3791, 1.3830 and 1.3854. Spot is currently 1.3865 while key resistance is placed at 1.3882 and 1.3906 (April high).