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12 Mar 2014
EUR/USD tests 1.3850
FXStreet (Edinburgh) - The lack of direction prevails on Wednesday so far, with the EUR/USD now challenging the lower band of the intraday range around 1.3850/45.
EUR/USD remains directionless
Today’s price action is nothing to write home about, as spot keeps looking for catalyst to break the prevailing dullness. Calendars in both the euro area and the US economy will not help today either, with only second-tier releases scheduled ahead of Thursday’s more relevant US Retail Sales (0.2% MoM exp.) and Initial Claims. The pair seems to be well supported in the mid-1.38s, down from ytd tops near 1.3920 printed last week. In ligh of recent comments by ECB officials, Currency Analyst Lee Hardman at BTMU suggested that, “ECB monetary policy continues to be perceived as relatively tight given that their balance sheet continues to shrink providing support for the euro”.
EUR/USD levels to watch
The pair is now retreating 0.07% at 1.3849 with the immediate support at 1.3834 (low Mar.11) followed by 1.3811 (23.6% of 1.3477-1.3915) and then 1.3800 (psychological level). On the upside, a break above 1.3897 (high Mar.10) would open the door to 1.3915 (2014 high Mar.7) and finally 1.400 (psychological level).
EUR/USD remains directionless
Today’s price action is nothing to write home about, as spot keeps looking for catalyst to break the prevailing dullness. Calendars in both the euro area and the US economy will not help today either, with only second-tier releases scheduled ahead of Thursday’s more relevant US Retail Sales (0.2% MoM exp.) and Initial Claims. The pair seems to be well supported in the mid-1.38s, down from ytd tops near 1.3920 printed last week. In ligh of recent comments by ECB officials, Currency Analyst Lee Hardman at BTMU suggested that, “ECB monetary policy continues to be perceived as relatively tight given that their balance sheet continues to shrink providing support for the euro”.
EUR/USD levels to watch
The pair is now retreating 0.07% at 1.3849 with the immediate support at 1.3834 (low Mar.11) followed by 1.3811 (23.6% of 1.3477-1.3915) and then 1.3800 (psychological level). On the upside, a break above 1.3897 (high Mar.10) would open the door to 1.3915 (2014 high Mar.7) and finally 1.400 (psychological level).