9 May 2014
EUR/USD treading water around 1.3750
FXStreet (Edinburgh) - It seems the selling nightmare is over for the EUR so far, with the EUR/USD now looking to stabilize in the 1.3855/50 region as the session draws to a close.
EUR/USD focus on the ZEW
Moving forward to Monday’s calendar in the euro bloc, there is nothing worth of mention, while the first risk event for the single currency appears on Tuesday with the release of the German/EMU ZEW Survey. Consensus expects the indicator to come in a tad higher for the present month, (theoretically) supporting the EUR. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “Considering strong EUR positive capital flows, It is likely to take more than a rate cut to reverse the strength in EUR”. Sutton also added that technicals are now mixed, with “studies are quickly shifting from buy to sell, with the MACD generating a sell signal and spot breaking below the 50-day MA at 1.3826. However, the upward trend has yet to break, and today’s weekly close will probe important in judging potential action next week”.
EUR/USD levels to consider
The pair is now losing 0.63% at 1.3752 with the immediate support at 1.3740 (100-d MA) ahead of 1.3738 (low Apr.8) and finally 1.3722 (daily cloud base). 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 focus on the ZEW
Moving forward to Monday’s calendar in the euro bloc, there is nothing worth of mention, while the first risk event for the single currency appears on Tuesday with the release of the German/EMU ZEW Survey. Consensus expects the indicator to come in a tad higher for the present month, (theoretically) supporting the EUR. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “Considering strong EUR positive capital flows, It is likely to take more than a rate cut to reverse the strength in EUR”. Sutton also added that technicals are now mixed, with “studies are quickly shifting from buy to sell, with the MACD generating a sell signal and spot breaking below the 50-day MA at 1.3826. However, the upward trend has yet to break, and today’s weekly close will probe important in judging potential action next week”.
EUR/USD levels to consider
The pair is now losing 0.63% at 1.3752 with the immediate support at 1.3740 (100-d MA) ahead of 1.3738 (low Apr.8) and finally 1.3722 (daily cloud base). 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).