24 Apr 2014
EUR/USD keeps the range on Draghi
FXStreet (Edinburgh) - The shared currency remained mostly apathetic on Draghi’s speech, taking the EUR/USD to the 1.3830/20 region on Thursday.
EUR/USD focus on US data
In his speech today, Mario Draghi stressed that a worse outlook for inflation in the medium term could trigger some sort of quantitative easing. Furthermore, he once again repeated that despite the exchange rate is not an ECB policy, its strengthening would mean tighter financial conditions. Spot remains resilient above the 1.3800 handle with the next risk event coming from the USD-side of the equation: US Durable Goods Orders and Initial Claims. Market consensus expects orders to have expanded 2.0% in March and Claims to come in at 310K in the week ended on April 18th. “While the short-term upward momentum has improved, it is not strong enough to drive EUR beyond the strong resistant at 1.3865 (high of 1.3855 yesterday). The key level is still at 1.3780 as only a break below this level would suggest that an end to the current bullish view. Otherwise, a break above 1.3865 for further EUR gains in the weeks ahead still cannot be ruled out”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD levels to watch
As of writing the pair is advancing 0.07% at 1.3826 with the immediate resistance at 1.3855 (high Apr.23) ahead of 1.3865 (high Apr.17) and then 1.3906 (high Apr.11). On the flip side, a breakdown of 1.3798 (low Apr.23) would target 1.3796 (21-d MA) en route to 1.3785 (low Apr.22).
EUR/USD focus on US data
In his speech today, Mario Draghi stressed that a worse outlook for inflation in the medium term could trigger some sort of quantitative easing. Furthermore, he once again repeated that despite the exchange rate is not an ECB policy, its strengthening would mean tighter financial conditions. Spot remains resilient above the 1.3800 handle with the next risk event coming from the USD-side of the equation: US Durable Goods Orders and Initial Claims. Market consensus expects orders to have expanded 2.0% in March and Claims to come in at 310K in the week ended on April 18th. “While the short-term upward momentum has improved, it is not strong enough to drive EUR beyond the strong resistant at 1.3865 (high of 1.3855 yesterday). The key level is still at 1.3780 as only a break below this level would suggest that an end to the current bullish view. Otherwise, a break above 1.3865 for further EUR gains in the weeks ahead still cannot be ruled out”, noted Quek Ser Leang, Market Strategist at UOB Group.
EUR/USD levels to watch
As of writing the pair is advancing 0.07% at 1.3826 with the immediate resistance at 1.3855 (high Apr.23) ahead of 1.3865 (high Apr.17) and then 1.3906 (high Apr.11). On the flip side, a breakdown of 1.3798 (low Apr.23) would target 1.3796 (21-d MA) en route to 1.3785 (low Apr.22).