8 May 2014
EUR/USD eyes 1.3950 as ECB looms
FXStreet (Edinburgh) - The bid tone remains intact around the shared currency on Thursday, taking the EUR/USD to levels shy of 1.3950 ahead of the ECB meeting.
EUR/USD focus on 2014 peak at 1.3967
Market consensus coincides that it will be a close call for the central bank, although bets for a more dovish tone from Draghi’s presser seem the safest so far. In the interim, 2014 top at 1.3967 and the psychological handle at 1.3900 appear as the immediate hurdles. “We believe that recent data do not yet provide sufficient information and clarity for the ECB to make a strong judgment about any of the contingencies explained by Mr. Draghi. Therefore, we expect the ECB to refrain from additional easing measures this week”, signalled Elwin de Groot, Senior Eurozone Strategist at Rabobank.
EUR/USD levels to watch
At the moment the pair is up 0.26% at 1.3948 with the next resistance at 1.3967 (2014 high Mar.13) ahead of 1.4000 (psychological level) and then 1.4100 (psychological level). On the flip side, a breakdown of 1.3905 (low May 8) would open the door to 1.3874 (10-d MA) and then 1.3865 (low May 5).
EUR/USD focus on 2014 peak at 1.3967
Market consensus coincides that it will be a close call for the central bank, although bets for a more dovish tone from Draghi’s presser seem the safest so far. In the interim, 2014 top at 1.3967 and the psychological handle at 1.3900 appear as the immediate hurdles. “We believe that recent data do not yet provide sufficient information and clarity for the ECB to make a strong judgment about any of the contingencies explained by Mr. Draghi. Therefore, we expect the ECB to refrain from additional easing measures this week”, signalled Elwin de Groot, Senior Eurozone Strategist at Rabobank.
EUR/USD levels to watch
At the moment the pair is up 0.26% at 1.3948 with the next resistance at 1.3967 (2014 high Mar.13) ahead of 1.4000 (psychological level) and then 1.4100 (psychological level). On the flip side, a breakdown of 1.3905 (low May 8) would open the door to 1.3874 (10-d MA) and then 1.3865 (low May 5).