6 Mar 2014
EUR/USD is a hidden dragon around 1.3730 area
FXStreet (Moscow) - EUR/USD was sleeping in a narrow 15-pips range during Asian hours as traders are bracing themselves for the key risk events of the day.
ECB meeting is nothing to sneeze at
Wednesday was an intriguing Wednesday for Euro. Eurozone published better than expected Service PMI data, retail sales surged unexpectedly and erased December decline, but the single currency was in no mood to grow, US data came out weaker then forecasted. Is it the same resilient Euro that stood firmly on the ground in the midst of geopolitical turmoil and on the back of not so impressive macro statistic? EUR/USD tested the lower limit of the current range at 1.3700, but bears were not able to go through the thick layer of bids and the pair returned to the middle of the daily range on profit taking. The ECB meets today to discuss the state of economy and set the monetary policy. Actually, most investors and economists are sure that the Bank will sit on the fence and refrain from drastic actions such as rate cut, QE-alternatives or negative deposit rates, but everyone is still fidgeting on their seats, waiting for Mr. Draghi to say something new. So there are two options for Euro: if the policy makers leave the rates and forecasts unchanged, the market reaction will be muted; if the rates are unchanged but inflation forecasts are upgraded, the single currency may grow across the board. EUR/USD needs a clear break above medium offers at 1.3745 to improve its short-term technical perspectives and open the way to 1.3790-1.3800. As long as it is below the said level, the consolidation mode with slight downside bias is the order of the day. The support is seen at 1.3700 and followed by 1/3686.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3729, with support below at 1.3708, 1.3686 and 1.3665, with resistance above at 1.3751, 1.3772, and 1.3794. Hourly Moving Averages are bearish, with the 200SMA at 1.3734 and the daily 20EMA at 1.3703. Hourly RSI is neutral at 44.
ECB meeting is nothing to sneeze at
Wednesday was an intriguing Wednesday for Euro. Eurozone published better than expected Service PMI data, retail sales surged unexpectedly and erased December decline, but the single currency was in no mood to grow, US data came out weaker then forecasted. Is it the same resilient Euro that stood firmly on the ground in the midst of geopolitical turmoil and on the back of not so impressive macro statistic? EUR/USD tested the lower limit of the current range at 1.3700, but bears were not able to go through the thick layer of bids and the pair returned to the middle of the daily range on profit taking. The ECB meets today to discuss the state of economy and set the monetary policy. Actually, most investors and economists are sure that the Bank will sit on the fence and refrain from drastic actions such as rate cut, QE-alternatives or negative deposit rates, but everyone is still fidgeting on their seats, waiting for Mr. Draghi to say something new. So there are two options for Euro: if the policy makers leave the rates and forecasts unchanged, the market reaction will be muted; if the rates are unchanged but inflation forecasts are upgraded, the single currency may grow across the board. EUR/USD needs a clear break above medium offers at 1.3745 to improve its short-term technical perspectives and open the way to 1.3790-1.3800. As long as it is below the said level, the consolidation mode with slight downside bias is the order of the day. The support is seen at 1.3700 and followed by 1/3686.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3729, with support below at 1.3708, 1.3686 and 1.3665, with resistance above at 1.3751, 1.3772, and 1.3794. Hourly Moving Averages are bearish, with the 200SMA at 1.3734 and the daily 20EMA at 1.3703. Hourly RSI is neutral at 44.