9 May 2014
EUR/USD breaches 1.3800
FXStreet (Edinburgh) - The bearishness around the EUR is intensifying now, dragging the EUR/USD to fresh weekly troughs below the 1.3800 critical handle.
EUR/USD capped by 1.4000
After hitting fresh 2014 highs just pips away from the 1.4000 mark on Thursday, spot nose-dived more than one big-figure to current lows near 1.3790/85 hurt by Draghi’s promise of further easing in June. Nothing worthy of note in today’s euro docket, with German trade surplus shrinking to €14.8 billion in March from €15.8 billion; across the pond, the speech by N.Kocherlakota will be in the spotlight. “We continue to expect that the ECB will lower its refi rate and deposit rate by 0.15 percentage points at their June meeting, which will lower the deposit rate into negative territory. A refi rate cut alone is unlikely to address euro strength while a negative deposit rate may help to modestly weaken the euro which makes it more likely now”, assessed Lee Hardman, Currency Analyst at BTMU.
EUR/USD levels to consider
The pair is now losing 0.39% at 1.3785 with the immediate support at 1.3771 (low Apr.30) followed by 1.3740 (100-d MA) and finally 1.3738 (low Apr.8). On the upside, a break above 1.3844 (high May 9) would target 1.3900 (psychological level) and then 1.3997 (2014 highs May 8).
EUR/USD capped by 1.4000
After hitting fresh 2014 highs just pips away from the 1.4000 mark on Thursday, spot nose-dived more than one big-figure to current lows near 1.3790/85 hurt by Draghi’s promise of further easing in June. Nothing worthy of note in today’s euro docket, with German trade surplus shrinking to €14.8 billion in March from €15.8 billion; across the pond, the speech by N.Kocherlakota will be in the spotlight. “We continue to expect that the ECB will lower its refi rate and deposit rate by 0.15 percentage points at their June meeting, which will lower the deposit rate into negative territory. A refi rate cut alone is unlikely to address euro strength while a negative deposit rate may help to modestly weaken the euro which makes it more likely now”, assessed Lee Hardman, Currency Analyst at BTMU.
EUR/USD levels to consider
The pair is now losing 0.39% at 1.3785 with the immediate support at 1.3771 (low Apr.30) followed by 1.3740 (100-d MA) and finally 1.3738 (low Apr.8). On the upside, a break above 1.3844 (high May 9) would target 1.3900 (psychological level) and then 1.3997 (2014 highs May 8).