7 May 2014
EUR/USD finds buyers near 1.3900
FXStreet (Edinburgh) - The intraday decline of the single currency seems to have found decent support in the 1.3910/00 area on Wednesday, with the EUR/USD now attempting to regain 1.3920/25.
EUR/USD looks to the ECB tomorrow
Moving forward to tomorrow’s docket in the euro bloc, German Industrial Production figures (0.2% MoM in March) will precede the more relevant ECB monetary policy meeting. Consensus amongst traders points to a very close call against the backdrop of disinflationary pressures, higher exchange rate and the recent call from the OECD to cut rates. “We expect the ECB to hold policy, leaving interest rates at 0.25%, but a dovish tone delivered by President Draghi”, commented Camilla Sutton, Chief FX Strategist at Scotiabank. Sutton also adds that short term technicals are bullish, “as most studies warn of buikding upside momentum. The year-to-date high of 1.3967 is the most obvious level followed by 1.4000, where EUR traded at in October 2011. Support lies at yesterday’s open of 1.3875”.
EUR/USD levels to watch
The pair is now losing 0.06% at 1.3918 with the immediate support at 1.3873 (low May 6) followed by 1.3866 (10-d MA) and then 1.3865 (low May 5). On the flip side, a breakout of 1.3952 (high May 6) would expose 1.3967 (2014 high Mar.13) and finally 1.4000 (psychological level).
EUR/USD looks to the ECB tomorrow
Moving forward to tomorrow’s docket in the euro bloc, German Industrial Production figures (0.2% MoM in March) will precede the more relevant ECB monetary policy meeting. Consensus amongst traders points to a very close call against the backdrop of disinflationary pressures, higher exchange rate and the recent call from the OECD to cut rates. “We expect the ECB to hold policy, leaving interest rates at 0.25%, but a dovish tone delivered by President Draghi”, commented Camilla Sutton, Chief FX Strategist at Scotiabank. Sutton also adds that short term technicals are bullish, “as most studies warn of buikding upside momentum. The year-to-date high of 1.3967 is the most obvious level followed by 1.4000, where EUR traded at in October 2011. Support lies at yesterday’s open of 1.3875”.
EUR/USD levels to watch
The pair is now losing 0.06% at 1.3918 with the immediate support at 1.3873 (low May 6) followed by 1.3866 (10-d MA) and then 1.3865 (low May 5). On the flip side, a breakout of 1.3952 (high May 6) would expose 1.3967 (2014 high Mar.13) and finally 1.4000 (psychological level).