14 Apr 2014
EUR/USD supported at 1.3840
FXStreet (Edinburgh) -The single currency os trading on the back footing at the beginning of the week, with the EUR/USD retreating to the mid-1.3800s.
EUR/USD weaker on Draghi’s comments
The likeliness of further easing by the ECB should the exchange rate gets stronger is weighing on spot on Monday, easing from Friday’s 1.3880 to levels sub-1.3840 after the Asian session. Data wise, there’s not much in the euro area, with Italian consumer prices matching estimates in March, ahead of EMU’s Industrial Production due later. In light of the key EMU’s CPI due on Wednesday, Strategist Paul Robson at RBS commented, “If no surprise materializes, we expect the EUR to trade even higher, with EUR/USD likely to attempt a break of 1.40. Such a move is likely to see a growing chorus of complaints from European central banks and politicians about currency strength and competition fears”.
EUR/USD levels to watch
As of writing, the pair is losing 0.28% at 1.3845 with the next support at 1.3820 (Kijun Sen) ahead of 1.3807 (21-d MA) and finally 1.3799 (10-d MA). On the upside, a breakout of 1.3861 (high Apr.14) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19).
EUR/USD weaker on Draghi’s comments
The likeliness of further easing by the ECB should the exchange rate gets stronger is weighing on spot on Monday, easing from Friday’s 1.3880 to levels sub-1.3840 after the Asian session. Data wise, there’s not much in the euro area, with Italian consumer prices matching estimates in March, ahead of EMU’s Industrial Production due later. In light of the key EMU’s CPI due on Wednesday, Strategist Paul Robson at RBS commented, “If no surprise materializes, we expect the EUR to trade even higher, with EUR/USD likely to attempt a break of 1.40. Such a move is likely to see a growing chorus of complaints from European central banks and politicians about currency strength and competition fears”.
EUR/USD levels to watch
As of writing, the pair is losing 0.28% at 1.3845 with the next support at 1.3820 (Kijun Sen) ahead of 1.3807 (21-d MA) and finally 1.3799 (10-d MA). On the upside, a breakout of 1.3861 (high Apr.14) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19).