29 Apr 2014
EUR/USD puts 1.3800 to the test
FXStreet (Edinburgh) - The euro is intensifying its intraday decline on Tuesday, dragging the EUR/USD to a test of 2-day lows in the lower 1.3800s.
EUR/USD back to square one: 1.3800
The pair has retraced the recent advance from the boundaries of the 1.3800 handle and is now poised for further losses in case consumer prices in the EMU disappoint investors tomorrow (0.8% YoY exp.). “The ECB's June meeting is a more likely time frame for new initiatives as the staff forecasts will be updated, and officials may have a clearer handle on the trajectory of price pressures. We can accept that some deflation in the periphery is not totally undesirable”, assessed analysts at BBH Global Currency Strategy Team.
EUR/USD levels to watch
As of writing the pair is losing 0.24% at 1.3817 and a breakdown of 1.3815 (low Apr.28) would allow a test of 1.3800 (psychological level). On the upside, the initial hurdle lines up at 1.3880 (high Apr.28) followed by 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).
EUR/USD back to square one: 1.3800
The pair has retraced the recent advance from the boundaries of the 1.3800 handle and is now poised for further losses in case consumer prices in the EMU disappoint investors tomorrow (0.8% YoY exp.). “The ECB's June meeting is a more likely time frame for new initiatives as the staff forecasts will be updated, and officials may have a clearer handle on the trajectory of price pressures. We can accept that some deflation in the periphery is not totally undesirable”, assessed analysts at BBH Global Currency Strategy Team.
EUR/USD levels to watch
As of writing the pair is losing 0.24% at 1.3817 and a breakdown of 1.3815 (low Apr.28) would allow a test of 1.3800 (psychological level). On the upside, the initial hurdle lines up at 1.3880 (high Apr.28) followed by 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).