7 Apr 2014
EUR/USD zigzags around 1.37
FXStreet (Moscow) - EUR/USD started the day at 1.3697, and since that time drifted up reaching 1.3710 session high by the moment.
New arguments on the way down
The pair hardly reacted to the positive German industrial data being still absorbed by the recent Draghi comments. The last week ECB meeting, though left everything unchanged, did scare away the euro investors. Draghi made every effort to push the single currency lower by listing all the possible ways to stimulate the still weak economy growth. But is it really the question of economic recovery, or more the fear of deflationary pressures? While the ECB is really concerned by the currently low price pressure, it sees the recovery on the path, and thus is not in a rush to introduce additional stimulus. However, it realizes the risk of further euro appreciation for the Germany export, and steps up with verbal interventions. Thus, we expect the 1.3760-1.38 area to limit the upside for EUR/USD medium term, and additional evidence of lower price pressure may trigger another wave of sell-off. The support at 1.3673 may become the initial target to the downside.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3703, with support below at 1.3673, 1.3643 and 1.3613, with resistance above at 1.3733, 1.3763, and 1.3793. Hourly Moving Averages are bearish, with the 200SMA at 1.3764 and the daily 20EMA bearish at 1.3704. Hourly RSI is neutral at 42.
New arguments on the way down
The pair hardly reacted to the positive German industrial data being still absorbed by the recent Draghi comments. The last week ECB meeting, though left everything unchanged, did scare away the euro investors. Draghi made every effort to push the single currency lower by listing all the possible ways to stimulate the still weak economy growth. But is it really the question of economic recovery, or more the fear of deflationary pressures? While the ECB is really concerned by the currently low price pressure, it sees the recovery on the path, and thus is not in a rush to introduce additional stimulus. However, it realizes the risk of further euro appreciation for the Germany export, and steps up with verbal interventions. Thus, we expect the 1.3760-1.38 area to limit the upside for EUR/USD medium term, and additional evidence of lower price pressure may trigger another wave of sell-off. The support at 1.3673 may become the initial target to the downside.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3703, with support below at 1.3673, 1.3643 and 1.3613, with resistance above at 1.3733, 1.3763, and 1.3793. Hourly Moving Averages are bearish, with the 200SMA at 1.3764 and the daily 20EMA bearish at 1.3704. Hourly RSI is neutral at 42.