25 Mar 2014
EUR/USD challenging 1.3800
FXStreet (Edinburgh) - The selling pressure has not given up on the single currency on Tuesday, dragging the EUR/USD to a test of the critical support at 1.3800.
EUR/USD clings to 1.3800
Mixed data from manufacturing PMIs on Monday plus the same tone from today’s German IFO failed to give further impulse to the EUR. On the negative side, Bundesbank’s Weidmann comments regarding negative rates and quantitative easing in the euro area collaborated with the grim sentiment around spot. Shaun Osborne, Chief FX Strategist at TD Securities, suggested “we think the market has peaked and reversed at 1.3850. Losses below 1.3765—trend support, break down point and yesterday’s low more or less—will push the EUR sharply lower”.
EUR/USD key levels
The pair is now losing 0.20% at 1.3811 with the next support at 1.3804 (low Mar.25) followed by 1.3760 (low Mar.24) and ahead of 1.3749 (low Mar.20). On the flip side, a break above 1.3877 (high Mar.24) would target 1.3935 (high Mar.19) en route to 1.3944 (high Mar.18).
EUR/USD clings to 1.3800
Mixed data from manufacturing PMIs on Monday plus the same tone from today’s German IFO failed to give further impulse to the EUR. On the negative side, Bundesbank’s Weidmann comments regarding negative rates and quantitative easing in the euro area collaborated with the grim sentiment around spot. Shaun Osborne, Chief FX Strategist at TD Securities, suggested “we think the market has peaked and reversed at 1.3850. Losses below 1.3765—trend support, break down point and yesterday’s low more or less—will push the EUR sharply lower”.
EUR/USD key levels
The pair is now losing 0.20% at 1.3811 with the next support at 1.3804 (low Mar.25) followed by 1.3760 (low Mar.24) and ahead of 1.3749 (low Mar.20). On the flip side, a break above 1.3877 (high Mar.24) would target 1.3935 (high Mar.19) en route to 1.3944 (high Mar.18).