12 May 2014
EUR/USD capped by 1.3770
FXStreet (Edinburgh) - The single currency keeps the trade in the lower band of the recent range, taking the EUR/USD to the 1.3755/50 region.
EUR/USD sidelined ahead of ZEW
The pair continues to meander in a narrow range with the 1.3770/75 band capping the bullish attempts. In the meantime, market participants keeps digesting Draghi’s promise of further easing against a backdrop of decreasing risk sentiment. In light of the recent ECB gathering, Analyst Carsten Brzeski at ING Bank commented, “In our view, the real new thing is that the ECB has become more concerned about the strength of the recovery and has clearly put more emphasis on the exchange rate. . For the rest, any next steps remain conditional on the June staff projections. Admittedly, with today’s comments, Draghi has clearly presented a cliff hanger which makes it hard for the ECB not to come up with a brandnew episode of monetary action at the June meeting”.
EUR/USD levels to consider
As of writing the pair is up 0.01% at 1.3757 with the immediate resistance at 1.3785 (daily cloud top) ahead of 1.3834 (21-d MA) and finally 1.3844 (high May 9). On the flip side, a breakdown of 1.3745 (low May 9) would target 1.3740 (100-d MA) en route to 1.3738 (low Apr.8).
EUR/USD sidelined ahead of ZEW
The pair continues to meander in a narrow range with the 1.3770/75 band capping the bullish attempts. In the meantime, market participants keeps digesting Draghi’s promise of further easing against a backdrop of decreasing risk sentiment. In light of the recent ECB gathering, Analyst Carsten Brzeski at ING Bank commented, “In our view, the real new thing is that the ECB has become more concerned about the strength of the recovery and has clearly put more emphasis on the exchange rate. . For the rest, any next steps remain conditional on the June staff projections. Admittedly, with today’s comments, Draghi has clearly presented a cliff hanger which makes it hard for the ECB not to come up with a brandnew episode of monetary action at the June meeting”.
EUR/USD levels to consider
As of writing the pair is up 0.01% at 1.3757 with the immediate resistance at 1.3785 (daily cloud top) ahead of 1.3834 (21-d MA) and finally 1.3844 (high May 9). On the flip side, a breakdown of 1.3745 (low May 9) would target 1.3740 (100-d MA) en route to 1.3738 (low Apr.8).