12 May 2014
EUR/USD keeps the range, near 1.3770
FXStreet (Edinburgh) - Scarce volatility around the single currency at the beginning of the week, with the EUR/USD trading with a 20/25 pips range so far.
EUR/USD focus on ZEW on Tuesday
The pair is now looking to stabilize around current levels, following the recent sharp sell-off induced by the ECB’s promise to take further easing measures in its next June meeting. The next risk evento for EUR traders will be tomorrow's ZEW Survey in the euro area and Germany, with consensus pointing to a generalized albeit small improvement. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Longer-term price signals are clearly EUR-negative. A bearish key week reversal (higher high, lower low and lower close) complements the same signal on daily charts… we think medium-term losses will extend below high/low support in the low 1.37s”.
EUR/USD levels to consider
As of writing the pair is up 0.05% at 1.3765 with the immediate resistance at 1.3785 (daily cloud top) ahead of 1.3834 (21-d MA) and finally 1.3844 (high May 9). On the flip side, a breakdown of 1.3745 (low May 9) would target 1.3740 (100-d MA) en route to 1.3738 (low Apr.8).
EUR/USD focus on ZEW on Tuesday
The pair is now looking to stabilize around current levels, following the recent sharp sell-off induced by the ECB’s promise to take further easing measures in its next June meeting. The next risk evento for EUR traders will be tomorrow's ZEW Survey in the euro area and Germany, with consensus pointing to a generalized albeit small improvement. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Longer-term price signals are clearly EUR-negative. A bearish key week reversal (higher high, lower low and lower close) complements the same signal on daily charts… we think medium-term losses will extend below high/low support in the low 1.37s”.
EUR/USD levels to consider
As of writing the pair is up 0.05% at 1.3765 with the immediate resistance at 1.3785 (daily cloud top) ahead of 1.3834 (21-d MA) and finally 1.3844 (high May 9). On the flip side, a breakdown of 1.3745 (low May 9) would target 1.3740 (100-d MA) en route to 1.3738 (low Apr.8).