2 May 2014
EUR/USD prints highs, flirts with 1.3880
FXStreet (Edinburgh) - The single currency is extending the bounce off 1.3810 posted post-Payrolls, pushing the EUR/USD to fresh intraday highs just pips away from 1.3880.
EUR/USD focus on the ECB meeting
The pair is closing its second consecutive week with gains, trading closer to April tops just above the 1.3900 handle. Positive data from manufacturing PMIs plus a lower (albeit still at high levels) unemployment rate in the bloc would be bolstering the upside momentum and adding to the belief that the recovery in the euro area is alive and sound. In light of the recent upbeat data releases, the ECB might refrain from easing further although the current level of the exchange rate might spark some ‘verbal intervention’. Camilla Sutton, Chief FX Strategist at Scotiabank notes the short term technicals are bullish and “continue to warn of upside risk with resistance at the April high of 1.3906 followed by the ytd of 1.3967. We expect a near term test of 1.40”.
EUR/USD key levels
The pair is now advancing 0.05% at 1.3877 and a surpass of 1.3889 (high May 1) would target 1.3906 (high Apr.11) en route to 1.3935 (high Mar.19). On the downside, the immediate support lies at 1.3814 (daily cloud top) ahead of 1.3805 (55-d MA) and then 1.3771 (low Apr.30).
EUR/USD focus on the ECB meeting
The pair is closing its second consecutive week with gains, trading closer to April tops just above the 1.3900 handle. Positive data from manufacturing PMIs plus a lower (albeit still at high levels) unemployment rate in the bloc would be bolstering the upside momentum and adding to the belief that the recovery in the euro area is alive and sound. In light of the recent upbeat data releases, the ECB might refrain from easing further although the current level of the exchange rate might spark some ‘verbal intervention’. Camilla Sutton, Chief FX Strategist at Scotiabank notes the short term technicals are bullish and “continue to warn of upside risk with resistance at the April high of 1.3906 followed by the ytd of 1.3967. We expect a near term test of 1.40”.
EUR/USD key levels
The pair is now advancing 0.05% at 1.3877 and a surpass of 1.3889 (high May 1) would target 1.3906 (high Apr.11) en route to 1.3935 (high Mar.19). On the downside, the immediate support lies at 1.3814 (daily cloud top) ahead of 1.3805 (55-d MA) and then 1.3771 (low Apr.30).