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1 Apr 2014
EUR/USD eyes 1.3800 on PMIs
FXStreet (Edinburgh) - A generalized better tone from the manufacturing PMI prints in the euro area are propping up today’s upside, with the EUR/USD trading closer to the 1.3800 handle.
EUR/USD optimist ahead of ECB
The auspicious PMI releases are helping spot to leave behind the weaker inflation figures during March (0.5% YoY), although more conviction is needed in order to break above the 1.3800 barrier. Of note is that manufacturing PMIs exceeded estimates in Spain, Italy and France, matched forecasts for the EMU and missed the median in Germany. Further data showed that the unemployment rate ticked lower in Germany to 6.7% in March and climbed to 13.0% in Italy from 12.9%. In the technical space, Chief FX Strategist Shaun Osborne at TD Securities, commented, “Weekly support at 1.3700/10 is holding but we look for a test of trend channel support... We continue to look for a drop back to 1.34/1.35”.
EUR/USD relevant levels
At the moment the pair is up 0.15% at 1.3789 with the immediate resistance at 1.3810 (high Mar.31) ahead of 1.3826 (21-d MA) and finally 1.3827 (high Mar.26). On the downside, a break below 1.3721 9LOW Mar.31) would target 1.3714 (55-d MA) en route to 1.3704 (low Mar.28).
EUR/USD optimist ahead of ECB
The auspicious PMI releases are helping spot to leave behind the weaker inflation figures during March (0.5% YoY), although more conviction is needed in order to break above the 1.3800 barrier. Of note is that manufacturing PMIs exceeded estimates in Spain, Italy and France, matched forecasts for the EMU and missed the median in Germany. Further data showed that the unemployment rate ticked lower in Germany to 6.7% in March and climbed to 13.0% in Italy from 12.9%. In the technical space, Chief FX Strategist Shaun Osborne at TD Securities, commented, “Weekly support at 1.3700/10 is holding but we look for a test of trend channel support... We continue to look for a drop back to 1.34/1.35”.
EUR/USD relevant levels
At the moment the pair is up 0.15% at 1.3789 with the immediate resistance at 1.3810 (high Mar.31) ahead of 1.3826 (21-d MA) and finally 1.3827 (high Mar.26). On the downside, a break below 1.3721 9LOW Mar.31) would target 1.3714 (55-d MA) en route to 1.3704 (low Mar.28).