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3 Jun 2014
EUR/USD extends gains and tests 200-day SMA
FXStreet (Córdoba) - The EUR/USD picked up momentum and rallied to fresh highs at the beginning of the American session, rising briefly above the 200-day SMA.
The USD failed to benefit from firmer US yields, 10-year yields are at highest in almost 3 weeks, and extended its decline versus the euro. The EUR/USD accelerated to a4-day high of 1.3647, but stalled just shy of Friday’s high. At time of writing, the pair is trading at 1.3635, recording a 0.29% gain on the day, having recouped roughly 60 pips from its low of 1.3587 scored on the back of disappointing Eurozone CPI (0.5% versus 0.7% expected).
Jamie Coleman, editor at FXBriefs commented that a sustained break above the 200-day SMA (1.3645) could prompt some short-covering, “and is the last thing the ECB wants on the eve of its big announcement”.
EUR/USD technical levels
As for technical levels, a break above 1.3645 (200-day SMA) would open the way to 1.3668 (May 27 high) and 1.3687 (May 22 high) en route to 1.3700 (psychological level). On the flip side, supports are seen at 1.3585 (May 29 low), 1.3561 (Feb 12 low).
The USD failed to benefit from firmer US yields, 10-year yields are at highest in almost 3 weeks, and extended its decline versus the euro. The EUR/USD accelerated to a4-day high of 1.3647, but stalled just shy of Friday’s high. At time of writing, the pair is trading at 1.3635, recording a 0.29% gain on the day, having recouped roughly 60 pips from its low of 1.3587 scored on the back of disappointing Eurozone CPI (0.5% versus 0.7% expected).
Jamie Coleman, editor at FXBriefs commented that a sustained break above the 200-day SMA (1.3645) could prompt some short-covering, “and is the last thing the ECB wants on the eve of its big announcement”.
EUR/USD technical levels
As for technical levels, a break above 1.3645 (200-day SMA) would open the way to 1.3668 (May 27 high) and 1.3687 (May 22 high) en route to 1.3700 (psychological level). On the flip side, supports are seen at 1.3585 (May 29 low), 1.3561 (Feb 12 low).