4 Mar 2014
EUR/USD in highs above 1.3770
FXStreet (Edinburgh) - The single currency keeps the recovery alive on Tuesday, lifting the EUR/USD to post fresh intraday highs beyond 1.3770.
EUR/USD boosted by risk appetite
Tensions around Russia and Ukraine have eased overnight, sparking a rally in the riskier assets and thus lifting spot from session lows in the boundaries of 1.3720. In light of the next ECB gathering on Thursday, Senior Currency Strategist Jane Foley at Rabobank commented “A perceived increase in deflationary risks and an enhanced chance of further ECB policy moves would impact the EUR, though for now EUR/USD looks set to remain well supported… We maintain a 12 month EUR/USD forecast of 1.28 but expect that EUR/USD will have difficulty in breaking below the 1.30 level this year”.
EUR/USD levels to watch
The pair is now advancing 0.26% at 1.3765 with the next resistance at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side, a breakdown of 1.3721 (low Mar.3) would target 1.3694 (low Feb.28) en route to 1.3672 (21-d MA).
EUR/USD boosted by risk appetite
Tensions around Russia and Ukraine have eased overnight, sparking a rally in the riskier assets and thus lifting spot from session lows in the boundaries of 1.3720. In light of the next ECB gathering on Thursday, Senior Currency Strategist Jane Foley at Rabobank commented “A perceived increase in deflationary risks and an enhanced chance of further ECB policy moves would impact the EUR, though for now EUR/USD looks set to remain well supported… We maintain a 12 month EUR/USD forecast of 1.28 but expect that EUR/USD will have difficulty in breaking below the 1.30 level this year”.
EUR/USD levels to watch
The pair is now advancing 0.26% at 1.3765 with the next resistance at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side, a breakdown of 1.3721 (low Mar.3) would target 1.3694 (low Feb.28) en route to 1.3672 (21-d MA).