7 May 2014
EUR/USD is still above 1.39, but hesitating
FXStreet (Moscow) - EUR/USD opened the day at 1.3927, and moved gradually lower 1.3915 by the moment.
Will Draghi be emotional this time?
The released recently German Industrial Data came out below expectations (-2.8% vs +0.3% expected), only supporting the view that the euro zone recovery is still very fragile. The pair is happily browsing above 1.39 thinking that recent OECD forecasts revision, and Spanish PMI surprises are enough to convince the ECB there is no rush in additional easing of the monetary policy. It is probably right that the changes are off the table, but we still have quite emotional Draghi, and he still can jawbone, and last time it did help. It looks like the current levels are very attractive for the euro bears, and we probably see some profit-taking today before the Thursday’s ECB meeting.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3917, with support below at 1.3881, 1.3836 and 1.3800, with resistance above at 1.3962, 1.3998, and 1.4043. Hourly Moving Averages are bullish, with the 200SMA at 1.3860 and the daily 20EMA at 1.3842. Hourly RSI is bullish at 59.
Will Draghi be emotional this time?
The released recently German Industrial Data came out below expectations (-2.8% vs +0.3% expected), only supporting the view that the euro zone recovery is still very fragile. The pair is happily browsing above 1.39 thinking that recent OECD forecasts revision, and Spanish PMI surprises are enough to convince the ECB there is no rush in additional easing of the monetary policy. It is probably right that the changes are off the table, but we still have quite emotional Draghi, and he still can jawbone, and last time it did help. It looks like the current levels are very attractive for the euro bears, and we probably see some profit-taking today before the Thursday’s ECB meeting.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3917, with support below at 1.3881, 1.3836 and 1.3800, with resistance above at 1.3962, 1.3998, and 1.4043. Hourly Moving Averages are bullish, with the 200SMA at 1.3860 and the daily 20EMA at 1.3842. Hourly RSI is bullish at 59.