29 Apr 2014
EUR/USD lower, testing 1.3800
FXStreet (Edinburgh) - The weakness around the EUR is growing bigger on Tuesday, with the EUR/USD now dropping to test the critical support at the 1.3800 handle.
EUR/USD in 3-day lows
Spot is now meandering in the low-1.3800s, after softer than expected German consumer prices prompted a sharp sell-off from the 1.3870 region this morning in Europe. The single currency would remain under pressure ahead of the release of the flash CPI in the EMU due tomorrow, with consensus expecting prices to rise 0.8% in a year to April. “With the fact that the ECB has become fairly well boxed in by low rates and a strong currency and market reactions that are not enough to offset the potential risks around the medium-term view, we changed our view last week to expect the ECB to cut the deposit rate into negative territory in June”, stressed Richard Kelly, Head of European Rates and FX Research at TD Securities.
EUR/USD relevant levels
The pair is now losing 0.29% at 1.3810 with the immediate support at 1.3792 (55-d MA) ahead of 1.3791 (low Apr.24) and then 1.3785 (low Apr.22). On the upside, a breakout of 1.3880 (high Apr.28) would open the door to 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).
EUR/USD in 3-day lows
Spot is now meandering in the low-1.3800s, after softer than expected German consumer prices prompted a sharp sell-off from the 1.3870 region this morning in Europe. The single currency would remain under pressure ahead of the release of the flash CPI in the EMU due tomorrow, with consensus expecting prices to rise 0.8% in a year to April. “With the fact that the ECB has become fairly well boxed in by low rates and a strong currency and market reactions that are not enough to offset the potential risks around the medium-term view, we changed our view last week to expect the ECB to cut the deposit rate into negative territory in June”, stressed Richard Kelly, Head of European Rates and FX Research at TD Securities.
EUR/USD relevant levels
The pair is now losing 0.29% at 1.3810 with the immediate support at 1.3792 (55-d MA) ahead of 1.3791 (low Apr.24) and then 1.3785 (low Apr.22). On the upside, a breakout of 1.3880 (high Apr.28) would open the door to 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).