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4 Jun 2014
EUR/USD back to test 1.3600
FXStreet (Edinburgh) - The shared currency is now losing the grip, dragging the EUR/USD to challenge the significant support at the 1.3600 handle.
EUR/USD weaker post-data
The pair returned from session highs just below the 1.3630 area on Wednesday, following in-line results from the GDP in the euro area during the first quarter, expanding 0.2% inter-quarter and 0-.9% over the last twelve months. Previous data saw services PMI missing estimates for the month of May, with the exception of Italy. Next in tap will be the US ADP report, Trade Balance figures, services PMI by market, ISM Non-manufacturing and the Fed’s Beige Book. In the view of Derek Halpenny, European Head of Global Markets Research at BTMU, “The EUR/USD rate remains stuck in a tight range, trading just above the 1.3600 level ahead of the key monetary policy announcement tomorrow… We won’t repeat our ECB calls here, but will repeat that the bar is high for the ECB to match or surpass the very high expectations in the market, suggesting limited downside scope for EUR”.
EUR/USD relevant levels
At the moment the pair is losing 0.09% at 1.3614 and a break below 1.3586 (low May 29) would open the door to 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the upside, the initial hurdle aligns at 1.3631 (high Jun.4) followed by 1.3648 (high Jun.3) and finally 1.3650 (high May 30).
EUR/USD weaker post-data
The pair returned from session highs just below the 1.3630 area on Wednesday, following in-line results from the GDP in the euro area during the first quarter, expanding 0.2% inter-quarter and 0-.9% over the last twelve months. Previous data saw services PMI missing estimates for the month of May, with the exception of Italy. Next in tap will be the US ADP report, Trade Balance figures, services PMI by market, ISM Non-manufacturing and the Fed’s Beige Book. In the view of Derek Halpenny, European Head of Global Markets Research at BTMU, “The EUR/USD rate remains stuck in a tight range, trading just above the 1.3600 level ahead of the key monetary policy announcement tomorrow… We won’t repeat our ECB calls here, but will repeat that the bar is high for the ECB to match or surpass the very high expectations in the market, suggesting limited downside scope for EUR”.
EUR/USD relevant levels
At the moment the pair is losing 0.09% at 1.3614 and a break below 1.3586 (low May 29) would open the door to 1.3585 (low Feb.13) and then 1.3563 (low Feb.12). On the upside, the initial hurdle aligns at 1.3631 (high Jun.4) followed by 1.3648 (high Jun.3) and finally 1.3650 (high May 30).