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22 May 2014
EUR/USD glued to 1.3650
FXStreet (Edinburgh) - The EUR/USD keeps meandering around the lower band of the intraday range near 1.3650, as the US session is drawing to a close.
EUR/USD extends the descent
Spot is more than three big-figures down since 2014 peaks near 1.4000 the figure in early May, falling almost uninterruptedly as market participants continue to price in some sort of monetary easing by the ECB in its June meeting. Tomorrow’s German GDP figures and the subsequent IFO indicator will grab all the attention, although a reaction in the pair is quite unlikely - as it’s been happening throughout the week with other data releases. “To date, the 200-day MA at 1.3636 has provided firm support. Today’s PMI data was encouraging from a broad level, but the trend in prices and France are growing concern and highlight the ECB’s dilemma well… The PMI does not change our core view that the ECB will act on interest rates at the June 5th meeting and than EUR will trend lower into year-end”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
As of writing the pair is losing 0.25% at 1.3651 with the next support at 1 1.3635 (low May 21) followed by 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).
EUR/USD extends the descent
Spot is more than three big-figures down since 2014 peaks near 1.4000 the figure in early May, falling almost uninterruptedly as market participants continue to price in some sort of monetary easing by the ECB in its June meeting. Tomorrow’s German GDP figures and the subsequent IFO indicator will grab all the attention, although a reaction in the pair is quite unlikely - as it’s been happening throughout the week with other data releases. “To date, the 200-day MA at 1.3636 has provided firm support. Today’s PMI data was encouraging from a broad level, but the trend in prices and France are growing concern and highlight the ECB’s dilemma well… The PMI does not change our core view that the ECB will act on interest rates at the June 5th meeting and than EUR will trend lower into year-end”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
As of writing the pair is losing 0.25% at 1.3651 with the next support at 1 1.3635 (low May 21) followed by 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).