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28 Mar 2014
EUR/USD nearing critical support - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst comments that Friday is not looking for EUR/USD, with the common currency down to 1.3704 against the greenback amid poor inflation data coming mostly from peripheral countries.
Key Quotes
“PPI readings from Italy, Spain and France missed expectations, while German Import prices fell below expected, usually a sign of increasing deflationary pressures in the country.”
“But latest slide has more to do with investors going for some action in upcoming ECB meeting rather than data, and profit taking ahead of the month end. The EUR/USD 4 hours chart shows the bearish strength remains intact, with 20 SMA heading lower now around 1.3780, Fibonacci resistance and 200 EMA, and indicators heading lower below their midlines.”
“So far, price remains steady around the 50% retracement of its latest bullish run around 1.3720, yet a downward acceleration could push the pair towards a critical support area, in between 1.3640/60: the pair presents daily lows, a daily ascendant trend line and the 61.8% retracement of the same rally all around those 20 pips.”
“To the upside, mentioned 1.3780 level is key as only above it the pair will be able to recover ground towards 1.3830/50 price zone.”
Key Quotes
“PPI readings from Italy, Spain and France missed expectations, while German Import prices fell below expected, usually a sign of increasing deflationary pressures in the country.”
“But latest slide has more to do with investors going for some action in upcoming ECB meeting rather than data, and profit taking ahead of the month end. The EUR/USD 4 hours chart shows the bearish strength remains intact, with 20 SMA heading lower now around 1.3780, Fibonacci resistance and 200 EMA, and indicators heading lower below their midlines.”
“So far, price remains steady around the 50% retracement of its latest bullish run around 1.3720, yet a downward acceleration could push the pair towards a critical support area, in between 1.3640/60: the pair presents daily lows, a daily ascendant trend line and the 61.8% retracement of the same rally all around those 20 pips.”
“To the upside, mentioned 1.3780 level is key as only above it the pair will be able to recover ground towards 1.3830/50 price zone.”