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31 Mar 2014
EUR/USD firmer, eyes on 1.3800
FXStreet (Edinburgh) - The single currency is gearing up for an assault to the 1.3800 handle on Monday after the EUR/USD quickly shrugged off the softer EMU data.
EUR/USD indifferent to EMU’s CPI
After an ephemeral knee-jerk to the boundaries of 1.3720 in the wake of EMU’s data, spot quickly reversed the drop and is now climbing beyond 1.3790. Martin van Vliet, Analyst at ING Bank NV, noted, “On balance, our base case is still for the ECB to keep interest rates unchanged on Thursday. Given the lengths Draghi went through last month to highlight that the ECB expects inflation to return to the target at the end of 2016, we would be surprised if the ECB acts based on an inflation figure that is distorted by the timing of Easter”.
EUR/USD relevant levels
At the moment the pair is up 0.29% at 1.3791 with the immediate resistance at 1.3805 (10-d MA) followed by 1.3825 (21-d MA). On the downside, a break below 1.3715 (55-d MA) would open the door to 1.3704 (low Mar.28) and finally 1.3694 (low Feb.28).
EUR/USD indifferent to EMU’s CPI
After an ephemeral knee-jerk to the boundaries of 1.3720 in the wake of EMU’s data, spot quickly reversed the drop and is now climbing beyond 1.3790. Martin van Vliet, Analyst at ING Bank NV, noted, “On balance, our base case is still for the ECB to keep interest rates unchanged on Thursday. Given the lengths Draghi went through last month to highlight that the ECB expects inflation to return to the target at the end of 2016, we would be surprised if the ECB acts based on an inflation figure that is distorted by the timing of Easter”.
EUR/USD relevant levels
At the moment the pair is up 0.29% at 1.3791 with the immediate resistance at 1.3805 (10-d MA) followed by 1.3825 (21-d MA). On the downside, a break below 1.3715 (55-d MA) would open the door to 1.3704 (low Mar.28) and finally 1.3694 (low Feb.28).