Back
27 Mar 2014
Session Recap: Never enough for hungry investors; EUR/USD below 1.3750
FXStreet (San Francisco) - US economic data came mixed as jobless claims, Kansas manuf. index and personal consumption rose above expectations but the Q4 GDP was revised ‘only’ to 2.6% from previous estimate of 2.4% while consensus was a growth of 2.7%. Dollar ran against the Euro but declined versus Pound.
All about next week ECB meeting with a trimming rates speculation and March & Q1 rebalancing flows. "We should also be mindful of the calendar as March 31st is fiscal year end for many Japanese corporations," comments FOREX.com analyst Chris Tevere. "As a result, we could see position adjustments greater than that of a typical given month. That said, a potentially more intriguing way to look at this over the coming days could be in the crosses."
In this framework, the EUR/USD closed the day below the 1.3750 key level; the GBP/USD rose for fourth day; the USD/CAD posted its fifth negative day in a row while the AUD/USD rose for fifth day while the NZD/USD jumped to 2-year highs.
The EUR/USD declined for third day to break below the 1.3750 and to reach 1.3725, minimum since March 6. The pair closed around 1.3740. "For now, the short term picture turned bearish, as the hourly chart shows price contained below a bearish 20 SMA and indicators flat near oversold readings," says Valeria Bednarik from FXStreet. "In the 4 hours chart technical readings present a clear bearish tone, with immediate support now around 1.3710/20, strong static support as per being the 50% retracement of the latest bullish run."
With the EUR/USD below the 1.3750, a breakdown of 1.3722 (50% of 1.3477-1.3967) would target 1.3720 (low Mar.6) en route to 1.3707 (low Mar.5). On the flip side, the initial hurdle aligns at 1.3825 (21-d MA) followed by 1.3827 (high Mar.26) and finally 1.3848 (high Mar.25).
Main headlines in the American session
US: GDP expanded 2.6% YoY in Q4
US initial jobless claims 311k vs 325k exp
US Pending Home Sales (MoM) came in at -0.8% disappointing forecasts (0%) in February
March US Kansas City Fed manufacturing index 22 vs 5 exp
US stocks extended declines on Thursday
All about next week ECB meeting with a trimming rates speculation and March & Q1 rebalancing flows. "We should also be mindful of the calendar as March 31st is fiscal year end for many Japanese corporations," comments FOREX.com analyst Chris Tevere. "As a result, we could see position adjustments greater than that of a typical given month. That said, a potentially more intriguing way to look at this over the coming days could be in the crosses."
In this framework, the EUR/USD closed the day below the 1.3750 key level; the GBP/USD rose for fourth day; the USD/CAD posted its fifth negative day in a row while the AUD/USD rose for fifth day while the NZD/USD jumped to 2-year highs.
The EUR/USD declined for third day to break below the 1.3750 and to reach 1.3725, minimum since March 6. The pair closed around 1.3740. "For now, the short term picture turned bearish, as the hourly chart shows price contained below a bearish 20 SMA and indicators flat near oversold readings," says Valeria Bednarik from FXStreet. "In the 4 hours chart technical readings present a clear bearish tone, with immediate support now around 1.3710/20, strong static support as per being the 50% retracement of the latest bullish run."
With the EUR/USD below the 1.3750, a breakdown of 1.3722 (50% of 1.3477-1.3967) would target 1.3720 (low Mar.6) en route to 1.3707 (low Mar.5). On the flip side, the initial hurdle aligns at 1.3825 (21-d MA) followed by 1.3827 (high Mar.26) and finally 1.3848 (high Mar.25).
Main headlines in the American session
US: GDP expanded 2.6% YoY in Q4
US initial jobless claims 311k vs 325k exp
US Pending Home Sales (MoM) came in at -0.8% disappointing forecasts (0%) in February
March US Kansas City Fed manufacturing index 22 vs 5 exp
US stocks extended declines on Thursday