EUR/USD: Resistance expected at 1.3830 - OCBC

FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, shares his view on the EUR/USD.

Key Quotes

"Despite cautionary comments from the European Council’s Herman Van Rompuy on the strength of the EUR, the common currency was also propped up by the January EZ current account surplus reading."

"EZ PMIs dominate the EZ calendar today while the German March Ifo and the appearance by the ECB’s Draghi’s on Tuesday may provide further cues ahead of the ECB meeting next week."

"On the CFTC front, leveraged net EUR longs increased in the latest week with the proportion of net open interest beginning to look pregnant by historical standards."

"If the EUR-USD detaches southwards from 1.3800, initial supports are expected into 1.3735 and 1.3750. Meanwhile, initial resistance is expected on approach of 1.3830."

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