30 Apr 2014
EUR/USD turns positive after Eurozone CPI
FXStreet (Córdoba) - The EUR/USD touched a fresh low immediately after the Eurozone CPI figures but quickly bounced to fresh daily highs as investors were relief figures came only tad below forecast.
Eurozone consumer prices rose 0.7% in April, just below the 0.8% expected but rising from a four-year low of 0.5% in March. Even the EUR/USD rushed to a fresh 3-week low of 1.3777 as the knee-jerk reaction, it quickly rebounded toward a high of 1.3832 before the 100-hour SMA offered resistance. At time of writing, the EUR/USD is trading at 1.3825, 0.10% above its opening price.
"The lower-than-expected Eurozone inflation reading for April will fuel speculation of further monetary easing by the ECB at next's week policy meeting", said the ING Bank analyst team. "However, we doubt whether the ECB will pull the trigger just yet".
EUR/USD technical levels
As for technical levels, if the EUR/USD regains the 1.3835 area, next resistances are seen at 1.3878 (Apr 28 & 29 highs) and 1.3900 (psychological level). On the flip side, supports could be found at 1.3777 (Apr 30 low), 1.3729 (100-day SMA) and 1.3700 (psychological level).
Eurozone consumer prices rose 0.7% in April, just below the 0.8% expected but rising from a four-year low of 0.5% in March. Even the EUR/USD rushed to a fresh 3-week low of 1.3777 as the knee-jerk reaction, it quickly rebounded toward a high of 1.3832 before the 100-hour SMA offered resistance. At time of writing, the EUR/USD is trading at 1.3825, 0.10% above its opening price.
"The lower-than-expected Eurozone inflation reading for April will fuel speculation of further monetary easing by the ECB at next's week policy meeting", said the ING Bank analyst team. "However, we doubt whether the ECB will pull the trigger just yet".
EUR/USD technical levels
As for technical levels, if the EUR/USD regains the 1.3835 area, next resistances are seen at 1.3878 (Apr 28 & 29 highs) and 1.3900 (psychological level). On the flip side, supports could be found at 1.3777 (Apr 30 low), 1.3729 (100-day SMA) and 1.3700 (psychological level).