15 Apr 2014
EUR/USD holds onto 1.3800 after US data
FXStreet (Córdoba) - The EUR/USD remained little changed around 1.3800 after the latest string of US data which showed consumer prices rose in line with expectations in March.
US consumer price index grew 1.5% YoY while core CPI rose 1.7%. Meanwhile, the New York Empire State manufacturing index slowed to 1.29 in April, from 5.61 in March and well below the 8 expected. The EUR/USD spiked to 1.3810 following US data but found resistance at the 21-hour SMA. At time of writing, the EUR/USD is trading at 1.3804, still 0.11% below its opening price, having traded in a slim range within 1.3790/1.3810 over the last hours.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that a strong Fibonacci support stands at 1.3780 and a break should lead to a downward extension in the short term towards the 1.3720/30 price zone, where a daily ascendant trend line coming from 1.2755 stands today.
"To the upside, price needs to firm up above 1.3820/30 area to be able to advance today, looking for a test of 1.3850 price zone; once above this latter, it may extend up to 1.3890 and finally fill the weekly opening gap", said Bednarik.
US consumer price index grew 1.5% YoY while core CPI rose 1.7%. Meanwhile, the New York Empire State manufacturing index slowed to 1.29 in April, from 5.61 in March and well below the 8 expected. The EUR/USD spiked to 1.3810 following US data but found resistance at the 21-hour SMA. At time of writing, the EUR/USD is trading at 1.3804, still 0.11% below its opening price, having traded in a slim range within 1.3790/1.3810 over the last hours.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that a strong Fibonacci support stands at 1.3780 and a break should lead to a downward extension in the short term towards the 1.3720/30 price zone, where a daily ascendant trend line coming from 1.2755 stands today.
"To the upside, price needs to firm up above 1.3820/30 area to be able to advance today, looking for a test of 1.3850 price zone; once above this latter, it may extend up to 1.3890 and finally fill the weekly opening gap", said Bednarik.