26 Mar 2014
EUR/USD is still under pressure from dovish Weidmann
FXStreet (Moscow) - EUR/USD is on the move down starting the day at 1.3825, and reaching 1.3804 session low by the moment.
Germany will be against
The euro is very sensitive to any official comments on its exchange rate now. It’s true that the pair is coming to a line in the sand in 1.39-1.40 area, which is supposed to damage the euro zone economy if broken. And though Draghi sounded not that aggressive as Weidmann, it’s actually quite logical to get more reaction from German Bundesbank. The export-oriented economy will suffer, and already suffers from appreciating single currency, as it makes the goods less attractive in the world arena. Thus, we may expect some more verbal interventions every time the pair steps in 1.39-1.40 area. The initial target to the downside is at 1.3767 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3807, with support below at 1.3767, 1.3707 and 1.3667, with resistance above at 1.3867, 1.3907, and 1.3967. Hourly Moving Averages are largely mixed, with the 200SMA at 1.3855 and the daily 20EMA flat at 1.3817. Hourly RSI is neutral at 48.
Germany will be against
The euro is very sensitive to any official comments on its exchange rate now. It’s true that the pair is coming to a line in the sand in 1.39-1.40 area, which is supposed to damage the euro zone economy if broken. And though Draghi sounded not that aggressive as Weidmann, it’s actually quite logical to get more reaction from German Bundesbank. The export-oriented economy will suffer, and already suffers from appreciating single currency, as it makes the goods less attractive in the world arena. Thus, we may expect some more verbal interventions every time the pair steps in 1.39-1.40 area. The initial target to the downside is at 1.3767 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3807, with support below at 1.3767, 1.3707 and 1.3667, with resistance above at 1.3867, 1.3907, and 1.3967. Hourly Moving Averages are largely mixed, with the 200SMA at 1.3855 and the daily 20EMA flat at 1.3817. Hourly RSI is neutral at 48.