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21 May 2014
EUR/USD mixed signals on the lows
FXStreet (Guatemala) - EUR/USD is trading at 1.3665, down -0.26% on the day, having posted a daily high at 1.3724 and low at 1.3652.
EUR/USD is scraping the barrel with little impetus from Europe, but on stronger US yields and a stronger dollar across the board, as well as strong action from the bears in EUR/GBP with sterling rising to challenge the 1.69 handle yet again on speculations of a split in the MPC and strong retail sales figures. In respect of EZ directly, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that "EU Parliament elections are being priced as containing minimal risk of a policy shift; leaving most of the focus on what steps the ECB will undertake on June 5th. There were only limited data releases today, with the current account balance narrowing to €18.8bn. Peripheral bond yields are lower today; suggesting an easing in outflows".
EUR/USD bearish
She further added, "EUR/USD short‐term technicals: bearish—spot has traded in a narrow range; but technicals continue to warn of downside pressure—see table. Support lies at the 200‐day MA at 1.3635; while resistance comes in at the 100‐day at 1.3738."
EUR/USD Levels
Current price is 1.3665, with resistance ahead at 1.3678 (Yesterday's Low), 1.3680 (Daily Classic S1), 1.3688 (Hourly 20 EMA), 1.3694 (Monthly Low) and 1.3694 (Weekly Low). Next support to the downside can be found at 1.3660 (Daily Classic S2), 1.3652 (Daily Low), 1.3642 (Daily Classic S3), 1.3636 (Weekly Classic S1) and 1.3632 (Daily 200 SMA).
EUR/USD chart formations
Looking at price patterns, we can see a Piercing Line and Engulfing Bullish 1-hour.
EUR/USD is scraping the barrel with little impetus from Europe, but on stronger US yields and a stronger dollar across the board, as well as strong action from the bears in EUR/GBP with sterling rising to challenge the 1.69 handle yet again on speculations of a split in the MPC and strong retail sales figures. In respect of EZ directly, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that "EU Parliament elections are being priced as containing minimal risk of a policy shift; leaving most of the focus on what steps the ECB will undertake on June 5th. There were only limited data releases today, with the current account balance narrowing to €18.8bn. Peripheral bond yields are lower today; suggesting an easing in outflows".
EUR/USD bearish
She further added, "EUR/USD short‐term technicals: bearish—spot has traded in a narrow range; but technicals continue to warn of downside pressure—see table. Support lies at the 200‐day MA at 1.3635; while resistance comes in at the 100‐day at 1.3738."
EUR/USD Levels
Current price is 1.3665, with resistance ahead at 1.3678 (Yesterday's Low), 1.3680 (Daily Classic S1), 1.3688 (Hourly 20 EMA), 1.3694 (Monthly Low) and 1.3694 (Weekly Low). Next support to the downside can be found at 1.3660 (Daily Classic S2), 1.3652 (Daily Low), 1.3642 (Daily Classic S3), 1.3636 (Weekly Classic S1) and 1.3632 (Daily 200 SMA).
EUR/USD chart formations
Looking at price patterns, we can see a Piercing Line and Engulfing Bullish 1-hour.