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3 Mar 2014
EUR/USD dips to low near 1.3760
FXStreet (Edinburgh) - The shared currency is now losing the grip, dragging the EUR/USD to fresh session lows in the 1.3765/60 area.
EUR/USD propped up by data, hurt by Ukraine
The risk-off sentiment continues to dominate the global markets at the start of the week, following renewed tensions between Russia and Ukraine. February’s PMIs above estimates in the euro area did little to revert the current decline in spot although they would be behind the resilience above 1.3750 so far. “The strengthening euro-zone economic growth outlook should help to maintain the euro-zone’s favourable basic balance surplus which is likely to remain supportive for the euro arguing in favour of persistent strength in the year ahead… It would appear that the euro is likely to remain strong and may even modestly strengthen further still unless the ECB continues to ease monetary policy to combat downside risks to their inflation target in the year ahead”, noted the research team at BTMU.
EUR/USD levels to consider
As of writing the pair is down 0.28% at 1.3754 with the next support at 1.3735 (10-d MA) followed by 1.3694 (low Feb.28) and then 1.3660 (21-d MA). On the upside, a breakout of 1.3825 (high 2014 Feb.28) would expose 1.3894 (high 2013 Dec.27) and finally 1.3900 (psychological level).
EUR/USD propped up by data, hurt by Ukraine
The risk-off sentiment continues to dominate the global markets at the start of the week, following renewed tensions between Russia and Ukraine. February’s PMIs above estimates in the euro area did little to revert the current decline in spot although they would be behind the resilience above 1.3750 so far. “The strengthening euro-zone economic growth outlook should help to maintain the euro-zone’s favourable basic balance surplus which is likely to remain supportive for the euro arguing in favour of persistent strength in the year ahead… It would appear that the euro is likely to remain strong and may even modestly strengthen further still unless the ECB continues to ease monetary policy to combat downside risks to their inflation target in the year ahead”, noted the research team at BTMU.
EUR/USD levels to consider
As of writing the pair is down 0.28% at 1.3754 with the next support at 1.3735 (10-d MA) followed by 1.3694 (low Feb.28) and then 1.3660 (21-d MA). On the upside, a breakout of 1.3825 (high 2014 Feb.28) would expose 1.3894 (high 2013 Dec.27) and finally 1.3900 (psychological level).