25 Mar 2014
EUR/USD will wait for new catalysts at 1.3830
FXStreet (Moscow) - EUR/USD retraced back to 1.3830 after it reached 1-week high at 1.3875 during late American session.
Draghi may scare bulls
Now the pair stumbled at 1.3830 support area, and may spend the session in consolidative moves. Recent PMI data from the EMU countries was mixed, but it did help to understand that both core economies are now on the territory of expansion, and in the long run it’s Euro-positive. The scheduled for release IFO Business Climate data may trigger some market interest, but the main focus for today may be on Draghi’s speech at night. We remember his clear hints on deflationary pressures because of strong euro, and if today’s comments will remind us of the same, wait for the sell-off. The market may start positioning before the speech during the European session, with the initial target at 1.3773 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3825, with support below at 1.3773, 1.3797 and 1.3655, with resistance above at 1.3891, 1.3943, and 1.4009. Hourly Moving Averages are largely bullish, with the 200SMA at 1.3866 and the daily 20EMA flat at 1.3816. Hourly RSI is neutral at 59.
Draghi may scare bulls
Now the pair stumbled at 1.3830 support area, and may spend the session in consolidative moves. Recent PMI data from the EMU countries was mixed, but it did help to understand that both core economies are now on the territory of expansion, and in the long run it’s Euro-positive. The scheduled for release IFO Business Climate data may trigger some market interest, but the main focus for today may be on Draghi’s speech at night. We remember his clear hints on deflationary pressures because of strong euro, and if today’s comments will remind us of the same, wait for the sell-off. The market may start positioning before the speech during the European session, with the initial target at 1.3773 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3825, with support below at 1.3773, 1.3797 and 1.3655, with resistance above at 1.3891, 1.3943, and 1.4009. Hourly Moving Averages are largely bullish, with the 200SMA at 1.3866 and the daily 20EMA flat at 1.3816. Hourly RSI is neutral at 59.