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28 Feb 2014
EUR/USD stabilizing above 1.3800
FXStreet (Edinburgh) - The shared currency is closing the week above the 1.3800 handle, with the EUR/USD around the 1.3810/20 area.
EUR/USD upside under pressure
Today’s upside has been underpinned by better-than-expected inflation figures in the euro area for the month of February, although spot could well see the current rally threatened ahead of the ECB meeting. Next week will be crucial for the pair as both dockets in Euroland and the US will be packed with key publications. Just to mention some releases in the euro area: EMU’s GDP figures, final PMI prints and the ECB monthly gathering; while on the USD side of the equation, the ISM Manufacturing, some Fedspeak and February’s Payrolls are due. “At first glance, today’s release could be viewed as a figure likely to downplay expectations for an ECB action at next week Governing Council meeting. However we think this might not be the case and that the Council could still announce new actions to counter an alarmingly low level of inflation”, commented Frederique Cerisier, Analyst at BNP Paribas.
EUR/USD levels to consider
At the moment the pair is up 0.77% at 1.3816 facing the next resistance at 1.3824 (2014 high Feb.28) followed by 1.3894 (2013 high Dec.27) and then 1.3900 (psychological level). 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 upside under pressure
Today’s upside has been underpinned by better-than-expected inflation figures in the euro area for the month of February, although spot could well see the current rally threatened ahead of the ECB meeting. Next week will be crucial for the pair as both dockets in Euroland and the US will be packed with key publications. Just to mention some releases in the euro area: EMU’s GDP figures, final PMI prints and the ECB monthly gathering; while on the USD side of the equation, the ISM Manufacturing, some Fedspeak and February’s Payrolls are due. “At first glance, today’s release could be viewed as a figure likely to downplay expectations for an ECB action at next week Governing Council meeting. However we think this might not be the case and that the Council could still announce new actions to counter an alarmingly low level of inflation”, commented Frederique Cerisier, Analyst at BNP Paribas.
EUR/USD levels to consider
At the moment the pair is up 0.77% at 1.3816 facing the next resistance at 1.3824 (2014 high Feb.28) followed by 1.3894 (2013 high Dec.27) and then 1.3900 (psychological level). 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).