10 Dec 2013
EUR/USD threatens 1.3800
FXstreet.com (Córdoba) - The EUR/USD extended gains into a sixth day Tuesday and is nearing the 1.3800 level as the shared currency continues to shrug-off negative Eurozone data.
After breaking above the 1.3770 area, the EUR/USD picked up momentum and climbed to a fresh 6-week high of 1.3794 supported by positive market sentiment. The EUR/USD however, faltered a few pips shy of the 1.3800 mark and it is currently trading at the 1.3780 area, recording a 0.3% gain on the day.
Meanwhile, ECB President Draghi added nothing new after a speech and showed no concerns about low inflation levels. "We have just projected a rate of inflation that is way below 2.0% for a protracted period of time," Draghi said. "But if we look at inflation expectations in the medium term, that is to say longer than the forecast horizon, we see they are well anchored."
EUR/USD levels to watch
In terms of technical levels, if the EUR/USD breaks above 1.3800 it would face next strong level at 1.3830 (Oct 25 high), followed by 1.3858 (Nov 9 2011 high). On the downside, supports are now seen at 1.3735 (daily low) and 1.3700 (psychological level).
After breaking above the 1.3770 area, the EUR/USD picked up momentum and climbed to a fresh 6-week high of 1.3794 supported by positive market sentiment. The EUR/USD however, faltered a few pips shy of the 1.3800 mark and it is currently trading at the 1.3780 area, recording a 0.3% gain on the day.
Meanwhile, ECB President Draghi added nothing new after a speech and showed no concerns about low inflation levels. "We have just projected a rate of inflation that is way below 2.0% for a protracted period of time," Draghi said. "But if we look at inflation expectations in the medium term, that is to say longer than the forecast horizon, we see they are well anchored."
EUR/USD levels to watch
In terms of technical levels, if the EUR/USD breaks above 1.3800 it would face next strong level at 1.3830 (Oct 25 high), followed by 1.3858 (Nov 9 2011 high). On the downside, supports are now seen at 1.3735 (daily low) and 1.3700 (psychological level).