30 Jan 2014
EUR/USD clings to 1.3600
FXstreet.com (Edinburgh) - The EUR/USD is now attempting to regain the 1.3600 handle after dipping to 1.3585/80 on poor EMU data and increasing risk-off trade.
EUR/USD in 5-day lows
The pair accelerated its correction lower after the Business Climate, Economic Sentiment and Industrial Confidence in the euro area missed estimates during January, despite the strong data from the German labour market and an improvement in EMU’s Consumer Confidence. In the opinion of Martin van Vliet, Analyst at ING, “Eurozone economic sentiment continued its streak of improvement in January, raising the probability that the ECB will keep its powder dry at next week’s policy meeting… On past form, the index is now consistent with Eurozone GDP growth of about 0.3% QoQ, which is a clear acceleration from the 0.1% growth seen in Q3 of last year”.
EUR/USD levels to watch
The pair is now retreating 0.37% at 1.3603 and a break below 1.3598 (low Jan.30) would target 1.3564 (daily cloud base) en route to 1.3530 (low Jan.23). On the flip side, the initial hurdle aligns at 1.3666 (high Jan.30) ahead of 1.3685 (high Jan.29) and then 1.3689 (high Jan.28).
EUR/USD in 5-day lows
The pair accelerated its correction lower after the Business Climate, Economic Sentiment and Industrial Confidence in the euro area missed estimates during January, despite the strong data from the German labour market and an improvement in EMU’s Consumer Confidence. In the opinion of Martin van Vliet, Analyst at ING, “Eurozone economic sentiment continued its streak of improvement in January, raising the probability that the ECB will keep its powder dry at next week’s policy meeting… On past form, the index is now consistent with Eurozone GDP growth of about 0.3% QoQ, which is a clear acceleration from the 0.1% growth seen in Q3 of last year”.
EUR/USD levels to watch
The pair is now retreating 0.37% at 1.3603 and a break below 1.3598 (low Jan.30) would target 1.3564 (daily cloud base) en route to 1.3530 (low Jan.23). On the flip side, the initial hurdle aligns at 1.3666 (high Jan.30) ahead of 1.3685 (high Jan.29) and then 1.3689 (high Jan.28).