20 Mar 2015
EUR/USD testing lows around 1.0650
FXStreet (Mumbai) - EUR/USD shaved-off previous gains and traded flat in the European morning, after German factory prices remained subdued in February, y/y, but showed an upward trend when measured on a monthly basis.
EUR/USD falls from 1.0690
The EUR/USD now trades flat at 1.0662 levels, inching closer towards 1.0650 levels. EUR/USD erased gains and is on its way to resume the downside bias as the US dollar seems to have recouped losses versus its major peers and continue its rally towards 100 mark.
EUR/USD remains pressured as the annual producer prices in Germany remained in negative territory for a 19th consecutive month in February, weighing on the euro. The headline annual Producer Price Index (PPI) in Germany declined 2.1% in February, but less than the decrease of 2.2% posted in Jan, against market consensus of a 2.0% drop.
On a monthly basis, however, the gauge edged 0.1% higher in February, while it had fallen 0.6% in Jan. Markets had predicted a 0.2% increase.
Meanwhile, EUR/USD may continue to head towards 2003 lows with not much volatility expected for the pair today, as the macro calendar is light in both Europe and the US. The current account for the EU is awaited next.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0700 levels, above which gains could be extended to 1.0780 levels. On the flip side, support is seen at 1.0650 levels, below which it could extend losses to 1.0579 (March 18 Low) levels.
EUR/USD falls from 1.0690
The EUR/USD now trades flat at 1.0662 levels, inching closer towards 1.0650 levels. EUR/USD erased gains and is on its way to resume the downside bias as the US dollar seems to have recouped losses versus its major peers and continue its rally towards 100 mark.
EUR/USD remains pressured as the annual producer prices in Germany remained in negative territory for a 19th consecutive month in February, weighing on the euro. The headline annual Producer Price Index (PPI) in Germany declined 2.1% in February, but less than the decrease of 2.2% posted in Jan, against market consensus of a 2.0% drop.
On a monthly basis, however, the gauge edged 0.1% higher in February, while it had fallen 0.6% in Jan. Markets had predicted a 0.2% increase.
Meanwhile, EUR/USD may continue to head towards 2003 lows with not much volatility expected for the pair today, as the macro calendar is light in both Europe and the US. The current account for the EU is awaited next.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0700 levels, above which gains could be extended to 1.0780 levels. On the flip side, support is seen at 1.0650 levels, below which it could extend losses to 1.0579 (March 18 Low) levels.