11 Apr 2014
EUR/USD firmer through 1.3900
FXStreet (Barcelona) - The single currency extends its march north on Friday, lifting the EUR/USD to fresh highs beyond the 1.3900 handle.
EUR/USD resilient, indifferent to German IPC
The risk-on trade is creeping back to the markets at the end of the week, with spot almost fully retracing the deep pullback post-FOMC meeting on March 19th. The EUR is closing the week with gains and reverting a negative 3-week streak against the backdrop of increasing buying interest stemming from better risk appetite sentiment and skepticism regarding the ECB current stance (inaction?). In another front, markets largely bypassed the German final inflation figures for the month of March, universally in line with consensus. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short term technical studies are mixed but turning increasingly bullish – the MACD generated a buy signal and the 9-day MA is flirting with a break above the 21-day MA. We expect a near term test of the March high of 1.3967 followed by a break to 1.4000”.
EUR/USD key levels
The pair is now up 0.06% at 1.3895 with the next resistance at 1.3967 (2014 high Mar.13) followed by 1.4000 (psychological level) and then 1.4172 (high Oct.31 2011). On the flip side, a breakdown of 1.3846 (low Mar.13) would target 1.3843 (low Mar.12) en route to 1.3834 (low Mar.11).
EUR/USD resilient, indifferent to German IPC
The risk-on trade is creeping back to the markets at the end of the week, with spot almost fully retracing the deep pullback post-FOMC meeting on March 19th. The EUR is closing the week with gains and reverting a negative 3-week streak against the backdrop of increasing buying interest stemming from better risk appetite sentiment and skepticism regarding the ECB current stance (inaction?). In another front, markets largely bypassed the German final inflation figures for the month of March, universally in line with consensus. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “short term technical studies are mixed but turning increasingly bullish – the MACD generated a buy signal and the 9-day MA is flirting with a break above the 21-day MA. We expect a near term test of the March high of 1.3967 followed by a break to 1.4000”.
EUR/USD key levels
The pair is now up 0.06% at 1.3895 with the next resistance at 1.3967 (2014 high Mar.13) followed by 1.4000 (psychological level) and then 1.4172 (high Oct.31 2011). On the flip side, a breakdown of 1.3846 (low Mar.13) would target 1.3843 (low Mar.12) en route to 1.3834 (low Mar.11).