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1 Apr 2014
EUR/USD flirting with 1.3800
FXStreet (Edinburgh) - The shared currency is now picking up pace vs. the greenback, lifting the EUR/USD back to the vicinity of 1.3800 the figure.
EUR/USD resilient near 1.3800
The pair is now exhibiting its usual resilience around the key 1.3800 handle, shrugging off earlier mixed data from euro zone manufacturing PMIs. With the ECB meeting on sight and the recent softer-than-expected EMU’s CPI figures, Currency Analyst Lee Hardman at BTMU commented, “The lack of euro negative reaction highlights that the market remains sceptical over the ECB’s desire to effectively ease policy to combat low inflation. Without implementing a negative deposit rate or QE, it is likely that the euro will remain strong for now especially if inflation expectations begin to fall lifting real yields”.
EUR/USD levels to watch
At the moment the pair is up 0.22% at 1.3800 with the immediate resistance at 1.3810 (high Mar.31) ahead of 1.3827 (high Mar.26) and finally 1.3828 (21-d MA). On the downside, a break below 1.3721 9LOW Mar.31) would target 1.3716 (55-d MA) en route to 1.3704 (low Mar.28).
EUR/USD resilient near 1.3800
The pair is now exhibiting its usual resilience around the key 1.3800 handle, shrugging off earlier mixed data from euro zone manufacturing PMIs. With the ECB meeting on sight and the recent softer-than-expected EMU’s CPI figures, Currency Analyst Lee Hardman at BTMU commented, “The lack of euro negative reaction highlights that the market remains sceptical over the ECB’s desire to effectively ease policy to combat low inflation. Without implementing a negative deposit rate or QE, it is likely that the euro will remain strong for now especially if inflation expectations begin to fall lifting real yields”.
EUR/USD levels to watch
At the moment the pair is up 0.22% at 1.3800 with the immediate resistance at 1.3810 (high Mar.31) ahead of 1.3827 (high Mar.26) and finally 1.3828 (21-d MA). On the downside, a break below 1.3721 9LOW Mar.31) would target 1.3716 (55-d MA) en route to 1.3704 (low Mar.28).