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2 Apr 2014
EUR/USD is back above 1.38
FXStreet (Moscow) - It looks like ">EUR/USD managed to position above 1.38 in the morning; it started the day at 1.3792, reached session high at 1.3810, and now trades around 1,3805.
What is the ECB’s focus?
The pair posts higher highs since the beginning of the week, and that is another reason for the uptrend near term. As the euro got immune to either bad or good data out of the EMU, it means the market only focus is on the ECB meeting and the following press conference of Draghi. Meanwhile, the expectations of unchanged monetary policy are growing, given the recent official comments, and the better than expected PMI numbers from euro zone periphery. Although the PMI data released yesterday didn’t trigger any broad market reaction, the strong French, Spanish and Italian data prove that the recovery is going on smoother within the region, and the previously seen divergence between Germany and ‘the rest’ is narrowing. If the ECB decides to focus on that instead of deflationary pressure, there will be no new tools launched, and the euro will get another boost with initial target at 1.3841 resistance level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3793, with support below at 1.3769, 1.3745 and 1.3721, with resistance above at 1.3817, 1.3841, and 1.3865. Hourly Moving Averages are bullish, with the 200SMA at 1.3786 and the daily 20EMA flat at 1.3798. Hourly RSI is neutral at 62.
What is the ECB’s focus?
The pair posts higher highs since the beginning of the week, and that is another reason for the uptrend near term. As the euro got immune to either bad or good data out of the EMU, it means the market only focus is on the ECB meeting and the following press conference of Draghi. Meanwhile, the expectations of unchanged monetary policy are growing, given the recent official comments, and the better than expected PMI numbers from euro zone periphery. Although the PMI data released yesterday didn’t trigger any broad market reaction, the strong French, Spanish and Italian data prove that the recovery is going on smoother within the region, and the previously seen divergence between Germany and ‘the rest’ is narrowing. If the ECB decides to focus on that instead of deflationary pressure, there will be no new tools launched, and the euro will get another boost with initial target at 1.3841 resistance level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3793, with support below at 1.3769, 1.3745 and 1.3721, with resistance above at 1.3817, 1.3841, and 1.3865. Hourly Moving Averages are bullish, with the 200SMA at 1.3786 and the daily 20EMA flat at 1.3798. Hourly RSI is neutral at 62.