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13 Mar 2014
EUR/USD clings to 1.3900
FXStreet (Edinburgh) - The selling pressure is now gathering pace in the global markets, with the EUR/USD wobbling around the 1.3900 barrier after hitting 1.3890.
EUR/USD reverts gains
The pair is rapidly depreciating vs. the greenback, although it seems that buyers showed up around 1.3890. In the meantime, risk aversion continues to dominate market sentiment since the release of upbeat results in the US docket, with February’s retail sales and initial claims surpassing expectations. According to Rob Carnell, Analyst at ING Bank NV, “Another month will probably be needed for confirmation, but we remain confident that the US recovery remains intact, and expect the Fed to be unmoved by some of the softness in recent data. As such, we expect that they will continue the taper at the current $10bn per meeting pace, with the next FOMC meeting on 19 March”.
EUR/USD levels to consider
At the moment the pair is losing 0.03% at 1.3897 and a break below 1.3843 (low Mar.12) would target 1.3834 (low Mar.11) en route to 1.3828 (10-d MA). On the upside, the initial hurdle remains at 1.4000 (psychological level) followed by 1.4100 (psychological levels) and finally 1.4172 (high Oct.31 2011).
EUR/USD reverts gains
The pair is rapidly depreciating vs. the greenback, although it seems that buyers showed up around 1.3890. In the meantime, risk aversion continues to dominate market sentiment since the release of upbeat results in the US docket, with February’s retail sales and initial claims surpassing expectations. According to Rob Carnell, Analyst at ING Bank NV, “Another month will probably be needed for confirmation, but we remain confident that the US recovery remains intact, and expect the Fed to be unmoved by some of the softness in recent data. As such, we expect that they will continue the taper at the current $10bn per meeting pace, with the next FOMC meeting on 19 March”.
EUR/USD levels to consider
At the moment the pair is losing 0.03% at 1.3897 and a break below 1.3843 (low Mar.12) would target 1.3834 (low Mar.11) en route to 1.3828 (10-d MA). On the upside, the initial hurdle remains at 1.4000 (psychological level) followed by 1.4100 (psychological levels) and finally 1.4172 (high Oct.31 2011).