5 May 2014
EUR/USD stuck around 1.3870
FXStreet (Edinburgh) - The single currency remains within an unusual narrow range on Monday, with the EUR/USD trading almost unchanged from last Friday’s close near 1.3870.
EUR/USD capped by 1.3880
Today’s anaemic trade is leaving spot to the mercy of scarce volatility, resulting in a very narrow 1.3870-1.3880 range, so far. There are no more data releases in the euro bloc, with the US ISM Non-manufacturing and the services PMI tracked by Markit unlikely to spark any reaction in the pair. Of note, however, was the release of the economic growth forecasts for the euro area by the European Commission, now expecting the region to expand 1.2% in 2014 and 1.7% in the next year; in addition, the Commission signalled the disinflationary pressures as the main headwind for the economic expansion. “Despite the volatile trading last Friday, the undertone for EUR is positive from here. However, weak upward momentum suggests limited upside risk for now. Expect 1.3840 to hold but any up-move will likely struggle near the strong resistant at 1.3900/05 (last month’s high)”, suggested Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD key levels
The pair is now advancing 0.02% at 1.3873 and a breakout of 1.3889 (high May 1) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19). On the flipside, the immediate support lines up at 1.3844 (10-d MA) followed by 1.3832 (21-d MA) and finally 1.3812 (low May 2).
EUR/USD capped by 1.3880
Today’s anaemic trade is leaving spot to the mercy of scarce volatility, resulting in a very narrow 1.3870-1.3880 range, so far. There are no more data releases in the euro bloc, with the US ISM Non-manufacturing and the services PMI tracked by Markit unlikely to spark any reaction in the pair. Of note, however, was the release of the economic growth forecasts for the euro area by the European Commission, now expecting the region to expand 1.2% in 2014 and 1.7% in the next year; in addition, the Commission signalled the disinflationary pressures as the main headwind for the economic expansion. “Despite the volatile trading last Friday, the undertone for EUR is positive from here. However, weak upward momentum suggests limited upside risk for now. Expect 1.3840 to hold but any up-move will likely struggle near the strong resistant at 1.3900/05 (last month’s high)”, suggested Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD key levels
The pair is now advancing 0.02% at 1.3873 and a breakout of 1.3889 (high May 1) would open the door to 1.3906 (high Apr.11) and then 1.3935 (high Mar.19). On the flipside, the immediate support lines up at 1.3844 (10-d MA) followed by 1.3832 (21-d MA) and finally 1.3812 (low May 2).