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21 Feb 2014
EUR/USD challenging 1.3700
FXStreet (Edinburgh) - The shared currency is trading on the soft camp on Friday, taking the EUR/USD to put the 1.3700 key support to the test once again.
EUR/USD looks resilient at current levels
Despite the less auspicious data from PMI readings in the euro area on Thursday, the pair is managing quite well to keep trading in he boundaries of 1.3700 the figure so far. Almost irrelevant docket in the euro bloc today, with only Italian inflation figures due followed by the Economic Growth Forecasts by the European Commission. Of note across the pond will be Existing Home Sales and Fedspeak by Bullard and Fisher, all against the backdrop of the recent weather-distorted data in the US economy. “Further ECB monetary easing could be delivered as soon as at their next policy meeting on the 6th March when the ECB staff will present for the first time their CPI projection for 2016. We continue to believe that additional ECB easing will be required to lift inflation back towards their target and weaken the euro”, underlined analysts at BTMU.
EUR/USD levels to watch
At the time of writing the pair is down 0.06% at 1.3710 with the next support at 1.3688 (10-d MA) followed by 1.3685 (low Feb.20) and then 1.3674 (low Feb.14). On the flip side, a break above 1.3763 (high Feb.20) would open the door to 1.3773 (high Feb.19) ahead of 1.3777 (2014 high Jan.2).
EUR/USD looks resilient at current levels
Despite the less auspicious data from PMI readings in the euro area on Thursday, the pair is managing quite well to keep trading in he boundaries of 1.3700 the figure so far. Almost irrelevant docket in the euro bloc today, with only Italian inflation figures due followed by the Economic Growth Forecasts by the European Commission. Of note across the pond will be Existing Home Sales and Fedspeak by Bullard and Fisher, all against the backdrop of the recent weather-distorted data in the US economy. “Further ECB monetary easing could be delivered as soon as at their next policy meeting on the 6th March when the ECB staff will present for the first time their CPI projection for 2016. We continue to believe that additional ECB easing will be required to lift inflation back towards their target and weaken the euro”, underlined analysts at BTMU.
EUR/USD levels to watch
At the time of writing the pair is down 0.06% at 1.3710 with the next support at 1.3688 (10-d MA) followed by 1.3685 (low Feb.20) and then 1.3674 (low Feb.14). On the flip side, a break above 1.3763 (high Feb.20) would open the door to 1.3773 (high Feb.19) ahead of 1.3777 (2014 high Jan.2).