13 May 2014
EUR/USD about to test 1.3700
FXStreet (Edinburgh) - Sellers continue to prevail around the shared currency on Tuesday, pushing the EUR/USD to fresh multi-week lows near the key support at 1.3700 the figure.
EUR/USD weaker on BuBa, ZEW
Disappointing results from the German/EMU ZEW Survey sparked a deep correction from intraday highs in the 1.3770/75 region on Tuesday. Adding to the grim mood, the selling interest gathered steam after the Bundesbank said it remains open to ECB’s quantitative easing, even a rate cut or negative rates, in case deflationary risks keep building up. In the view of Clemente De Lucia, Analyst at BNP Paribas, “when nominal rates are close to zero, their impact on the economy becomes more and more marginal. Therefore, more radical actions to stimulate activity and prices are needed and the Council seems more open to embark on further non-conventional measures, such as buying private and/or sovereign debt securities”.
EUR/USD levels to consider
As of writing the pair is losing 0.37% at 1.3707 and , a breakdown of 1.3700 (psychological level) would target 1.3672 (low Apr.4) en route to 1.3643 (low Feb.27). On the upside, the immediate hurdle lines up at 1.3775 (high May 12) ahead of 1.3783 (daily cloud top) and finally 1.3820 (21-d MA).
EUR/USD weaker on BuBa, ZEW
Disappointing results from the German/EMU ZEW Survey sparked a deep correction from intraday highs in the 1.3770/75 region on Tuesday. Adding to the grim mood, the selling interest gathered steam after the Bundesbank said it remains open to ECB’s quantitative easing, even a rate cut or negative rates, in case deflationary risks keep building up. In the view of Clemente De Lucia, Analyst at BNP Paribas, “when nominal rates are close to zero, their impact on the economy becomes more and more marginal. Therefore, more radical actions to stimulate activity and prices are needed and the Council seems more open to embark on further non-conventional measures, such as buying private and/or sovereign debt securities”.
EUR/USD levels to consider
As of writing the pair is losing 0.37% at 1.3707 and , a breakdown of 1.3700 (psychological level) would target 1.3672 (low Apr.4) en route to 1.3643 (low Feb.27). On the upside, the immediate hurdle lines up at 1.3775 (high May 12) ahead of 1.3783 (daily cloud top) and finally 1.3820 (21-d MA).