17 Jun 2014
EUR/USD determined to stay up
FXStreet (Guatemala) - EUR/USD is trading at 1.3572, up 0.01% on the day, having posted a daily high at 1.3575 and low at 1.3572.
EUR/USD is holding it’s own and remains in the higher end of the 1.3 handle, quite remarkable given the ground lost at the end of last weeks session. Meanwhile, taking yields into account, EUR/USD, as Richard Franulovich at Westpac Banking Corporation ABN explained, has resisted a decline in short-term interest rate differentials that would have otherwise seen it depreciate sharply. “EUR/USD initially decoupled from interest rate differentials in late 2013. However, the yawning chasm has grown yet further in June. The two year Bund-Treasury spread has moved dramatically against EUR in June, yet the currency has shed a mere net 70 pips in value since then. This is of course not the first time EUR has resisted a narrowing in yield spreads. It is however noteworthy that EUR has ignored such a dramatic narrowing in yield spreads over such a short period of time”.
EUR/USD Levels
With spot trading at 1.3574, we can see next resistance ahead at 1.3575 (Daily High), 1.3579 (Hourly 200 SMA), 1.3580 (Yesterday's High), 1.3594 (Weekly High) and 1.3607 (Daily Classic R2). Support below can be found at 1.3574 (Daily Open), (Weekly Classic PP), 1.3573 (Daily Classic R1), 1.3572 (Daily Low) and 1.3560 (Hourly 20 EMA).
EUR/USD is holding it’s own and remains in the higher end of the 1.3 handle, quite remarkable given the ground lost at the end of last weeks session. Meanwhile, taking yields into account, EUR/USD, as Richard Franulovich at Westpac Banking Corporation ABN explained, has resisted a decline in short-term interest rate differentials that would have otherwise seen it depreciate sharply. “EUR/USD initially decoupled from interest rate differentials in late 2013. However, the yawning chasm has grown yet further in June. The two year Bund-Treasury spread has moved dramatically against EUR in June, yet the currency has shed a mere net 70 pips in value since then. This is of course not the first time EUR has resisted a narrowing in yield spreads. It is however noteworthy that EUR has ignored such a dramatic narrowing in yield spreads over such a short period of time”.
EUR/USD Levels
With spot trading at 1.3574, we can see next resistance ahead at 1.3575 (Daily High), 1.3579 (Hourly 200 SMA), 1.3580 (Yesterday's High), 1.3594 (Weekly High) and 1.3607 (Daily Classic R2). Support below can be found at 1.3574 (Daily Open), (Weekly Classic PP), 1.3573 (Daily Classic R1), 1.3572 (Daily Low) and 1.3560 (Hourly 20 EMA).