4 Mar 2014
EUR/USD closing the day near 1.3730
FXStreet (Edinburgh) - The shared currency is now clinging to the positive territory while the EUR/USD is meandering around 1.3730 as US markets are drawing to a close on Tuesday.
EUR/USD surrendered gains
The pair is back to square one, looking to consolidate in a narrow range around 1.3730/35. Spot gave away initial gains after climbing to the area beyond 1.3780 amidst increasing risk appetite following the positive events from Crimea. In another direction, very interesting euro docket lies ahead on Wednesday: it’s Services-PMI day, followed by EMU’s flash Q4 GDP and retail sales. Across the Atlantic, the ADP report and the ISM-Non Manufacturing would grab all the attention ahead of the Fed’s Beige Book. “The key this week is the ECB meeting on Thursday; however as GDP came in stronger than expected and some disinflationary pressures appear to be easing… we do not expect a major revision to the ECB’s forecasts. This will leave policy action on hold and likely see President Draghi strike a similar tone to his comments in February. This should keep EUR temporarily elevated. We hold a Q114 target of 1.40 and a year-end target of 1.30”, noted Camilla Sutton, Chief FX Strategy at Scotiabank.
EUR/USD important levels
The pair is now advancing 0.05% at 1.3736 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 1.3718 (low Mar.4) would target 1.3694 (low Feb.28) en route to 1.3683 (21-d MA).
EUR/USD surrendered gains
The pair is back to square one, looking to consolidate in a narrow range around 1.3730/35. Spot gave away initial gains after climbing to the area beyond 1.3780 amidst increasing risk appetite following the positive events from Crimea. In another direction, very interesting euro docket lies ahead on Wednesday: it’s Services-PMI day, followed by EMU’s flash Q4 GDP and retail sales. Across the Atlantic, the ADP report and the ISM-Non Manufacturing would grab all the attention ahead of the Fed’s Beige Book. “The key this week is the ECB meeting on Thursday; however as GDP came in stronger than expected and some disinflationary pressures appear to be easing… we do not expect a major revision to the ECB’s forecasts. This will leave policy action on hold and likely see President Draghi strike a similar tone to his comments in February. This should keep EUR temporarily elevated. We hold a Q114 target of 1.40 and a year-end target of 1.30”, noted Camilla Sutton, Chief FX Strategy at Scotiabank.
EUR/USD important levels
The pair is now advancing 0.05% at 1.3736 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 1.3718 (low Mar.4) would target 1.3694 (low Feb.28) en route to 1.3683 (21-d MA).