28 Apr 2014
EUR/USD consolidating around 1.3870
FXStreet (Edinburgh) - The shared currency is now attempting to consolidate in the upper band of today’s range, with the EUR/USD hovering over 1.3875/80.
EUR/USD bolstered by risk appetite
The better sentiment in the risk-associated assets allows the EUR to print 2-week highs, leaving the door open for a retest of recent highs at 1.3906 in early April. Ahead in the week, EMU’s flash CPI figures for the month of April will take centre stage in light of the ECB meeting. “It is our view that the ECB would rather use traditional policy tools before rolling out a programme of quantitative easing. But, whatever it decides it is quite possible that it will be little discernible success in undermining the EUR. In fact, we would argue that there is only one thing that will have a guaranteed effect on bring down the value of EUR/USD in the coming weeks and that would be a strengthening of the USD”, observed Jane Foley, Senior Currency Strategist at Rabobank.
EUR/USD levels to watch
As of writing the pair is advancing 0.19% at 1.3860 with the next resistance at 1.3906 (high Apr.11) ahead of 1.3935 (high Mar.19) and 1.3944 (high Mar.18). On the flip side, a breakdown of 1.3815 (low Apr.28) would aim for 1.3805 (21-d MA) and finally 1.3791 (low Apr.24).
EUR/USD bolstered by risk appetite
The better sentiment in the risk-associated assets allows the EUR to print 2-week highs, leaving the door open for a retest of recent highs at 1.3906 in early April. Ahead in the week, EMU’s flash CPI figures for the month of April will take centre stage in light of the ECB meeting. “It is our view that the ECB would rather use traditional policy tools before rolling out a programme of quantitative easing. But, whatever it decides it is quite possible that it will be little discernible success in undermining the EUR. In fact, we would argue that there is only one thing that will have a guaranteed effect on bring down the value of EUR/USD in the coming weeks and that would be a strengthening of the USD”, observed Jane Foley, Senior Currency Strategist at Rabobank.
EUR/USD levels to watch
As of writing the pair is advancing 0.19% at 1.3860 with the next resistance at 1.3906 (high Apr.11) ahead of 1.3935 (high Mar.19) and 1.3944 (high Mar.18). On the flip side, a breakdown of 1.3815 (low Apr.28) would aim for 1.3805 (21-d MA) and finally 1.3791 (low Apr.24).