Back
28 Feb 2014
EUR/USD back below 1.3800
FXStreet (Edinburgh) - The shared currency is now retreating to sub-1.3800 levels vs. the USD on Friday, dragging the EUR/USD back to 1.3790/85.
EUR/USD buoyant at 2014 highs
After posting fresh ytd highs near 1.3815, spot is slipping back to the high 1.37s although the EUR remains well bid at current levels. In light of the recent advanced EMU’s inflation figures for February, Analyst Martin van Vliet at ING Bank NV, commented “the stable headline inflation reading coupled with the ongoing signs of economic recovery provide an argument for the ECB to keep their powder dry next week. To be sure, if the ECB decides to ease policy anyway, it will probably merely consist of a small refi-rate cut; the deposit rate would likely stay at zero”.
EUR/USD levels to consider
At the moment the pair is up 0.58% at 1.3789 with the next resistance at 1.3813 (2014 high Feb.28) followed by 1.3819 (high Dec.30) and then 1.3894 (2013 high Dec.27). On the downside, a breach of 1.3694 (low Feb.28) would target 1.3660 (21-d MA) en route to 1.3647 (daily cloud base).
EUR/USD buoyant at 2014 highs
After posting fresh ytd highs near 1.3815, spot is slipping back to the high 1.37s although the EUR remains well bid at current levels. In light of the recent advanced EMU’s inflation figures for February, Analyst Martin van Vliet at ING Bank NV, commented “the stable headline inflation reading coupled with the ongoing signs of economic recovery provide an argument for the ECB to keep their powder dry next week. To be sure, if the ECB decides to ease policy anyway, it will probably merely consist of a small refi-rate cut; the deposit rate would likely stay at zero”.
EUR/USD levels to consider
At the moment the pair is up 0.58% at 1.3789 with the next resistance at 1.3813 (2014 high Feb.28) followed by 1.3819 (high Dec.30) and then 1.3894 (2013 high Dec.27). On the downside, a breach of 1.3694 (low Feb.28) would target 1.3660 (21-d MA) en route to 1.3647 (daily cloud base).