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5 Mar 2014
EUR/USD challenging 1.3700?
FXStreet (Edinburgh) - The selling pressure around the EUR is now gathering steam, dragging the EUR/USD to test the 1.3710/10 band.
EUR/USD weaker despite data
Better-than- expected EMU’s retail sales in January (1.6% MoM) and in-line Q4 GDP (0.3% QoQ) done nothing to curb the prevailing selling interest in the pair, on its way to challenge the critical support at 1.3700. According to Martin van Vliet, Analyst at ING Bank NV, “To be sure, the Eurozone recovery is still very fragile, and with the subdued inflation outlook and the strong … there remains a compelling case for further monetary easing. But our guess is that the ongoing signs of recovery will tip the balance in favour of unchanged interest rates at tomorrow’s meeting. If by any chance the ECB still has the urge to do something, this might take the form of pausing SMP sterilization or strengthening the forward guidance”.
EUR/USD important levels
The pair is now losing 0.14% at 1.3720 and a breakdown of 1.3718 (low Mar.4) would target 1.3694 (low Feb.28) en route to 1.3693 (21-d MA). On the upside, the next target aligns at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side,
EUR/USD weaker despite data
Better-than- expected EMU’s retail sales in January (1.6% MoM) and in-line Q4 GDP (0.3% QoQ) done nothing to curb the prevailing selling interest in the pair, on its way to challenge the critical support at 1.3700. According to Martin van Vliet, Analyst at ING Bank NV, “To be sure, the Eurozone recovery is still very fragile, and with the subdued inflation outlook and the strong … there remains a compelling case for further monetary easing. But our guess is that the ongoing signs of recovery will tip the balance in favour of unchanged interest rates at tomorrow’s meeting. If by any chance the ECB still has the urge to do something, this might take the form of pausing SMP sterilization or strengthening the forward guidance”.
EUR/USD important levels
The pair is now losing 0.14% at 1.3720 and a breakdown of 1.3718 (low Mar.4) would target 1.3694 (low Feb.28) en route to 1.3693 (21-d MA). On the upside, the next target aligns at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side,