10 Dec 2013
EUR/USD in highs beyond 1.3770
FXstreet.com (Edinburgh) - A bout of buying interest is now pushing the bloc currency to post multi-week highs vs. the greenback, taking the EUR/USD to levels above 1.3770.
EUR/USD boosted by risk
The pair is thus extending the ongoing rally, trading closer to the ytd peaks above 1.3830 (October 25th) amidst increasing risk appetite. The recent inaction from the ECB (other than the usual rhetoric) is another factor collaborating with the EUR strength. “The euro may not be a policy tool for the ECB but it still has significant influence over monetary conditions in the Eurozone. Insofar as the market is sceptical of the capacity of the ECB to further weaken monetary policy settings in the Eurozone, a push lower in EUR/USD would be welcome… If the USD stays weaker for longer EUR/USD is likely to remain well supported for longer”.
EUR/USD levels to watch
As of writing the pair is up 0.20% at 1.3768 with the next resistance at 1.3787 (high Oct.30) ahead of 1.3818 (high Oct.28) and finally 1.3833 (high Oct.25). On the flip side, a breakdown of 1.3695 (low Dec.9) would open the door to 1.3638 (daily cloud top) and then 1.3620 (low Dec.6).
EUR/USD boosted by risk
The pair is thus extending the ongoing rally, trading closer to the ytd peaks above 1.3830 (October 25th) amidst increasing risk appetite. The recent inaction from the ECB (other than the usual rhetoric) is another factor collaborating with the EUR strength. “The euro may not be a policy tool for the ECB but it still has significant influence over monetary conditions in the Eurozone. Insofar as the market is sceptical of the capacity of the ECB to further weaken monetary policy settings in the Eurozone, a push lower in EUR/USD would be welcome… If the USD stays weaker for longer EUR/USD is likely to remain well supported for longer”.
EUR/USD levels to watch
As of writing the pair is up 0.20% at 1.3768 with the next resistance at 1.3787 (high Oct.30) ahead of 1.3818 (high Oct.28) and finally 1.3833 (high Oct.25). On the flip side, a breakdown of 1.3695 (low Dec.9) would open the door to 1.3638 (daily cloud top) and then 1.3620 (low Dec.6).