13 Mar 2014
EUR/USD bounces off 1.3850
FXStreet (Edinburgh) - The EUR/USD seems to have found support in the 1.3850/45 area at the end of the US trading session on Thursday, currently regaining the 1.3860 level.
EUR/USD 1.40… so close, so far away…
The pair was trading in an upbeat mood and its usual resilience until US retail sales and employment report surprised investors to the upside, sparking a correction lower and increasing the inflows to the greenback. Later dovish comments by Mario Draghi accentuated the sell-off to levels post-Payrolls around 1.3850. Eric Theoret, Currency Strategist at Scotiabank, remarked the bullishness of the technicals studies, adding “EUR breaks to news ytd and multi-year highs, having breached a multi-year downtrend line. The RSI is now at 70, highlighting the potential risk of exhaustion, however the near term uptrend is strong”.
EUR/USD levels to consider
At the moment the pair is losing 0.33% at 1.3857 and a break below 1.3843 (low Mar.12) would target 1.3834 (low Mar.11) en route to 1.3828 (10-d MA). On the upside, the initial hurdle remains at 1.4000 (psychological level) followed by 1.4100 (psychological levels) and finally 1.4172 (high Oct.31 2011).
EUR/USD 1.40… so close, so far away…
The pair was trading in an upbeat mood and its usual resilience until US retail sales and employment report surprised investors to the upside, sparking a correction lower and increasing the inflows to the greenback. Later dovish comments by Mario Draghi accentuated the sell-off to levels post-Payrolls around 1.3850. Eric Theoret, Currency Strategist at Scotiabank, remarked the bullishness of the technicals studies, adding “EUR breaks to news ytd and multi-year highs, having breached a multi-year downtrend line. The RSI is now at 70, highlighting the potential risk of exhaustion, however the near term uptrend is strong”.
EUR/USD levels to consider
At the moment the pair is losing 0.33% at 1.3857 and a break below 1.3843 (low Mar.12) would target 1.3834 (low Mar.11) en route to 1.3828 (10-d MA). On the upside, the initial hurdle remains at 1.4000 (psychological level) followed by 1.4100 (psychological levels) and finally 1.4172 (high Oct.31 2011).