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22 May 2014
EUR/USD treading water around 1.3680
FXStreet (Edinburgh) - The single currency is now attempting a consolidation patter ahead of the US docket, with the EUR/USD meandering the 1.3685/80 band.
EUR/USD capped by 1.3685
It seems the intraday upside remains limited by the 1.3685/90 area after the mixed results from the advanced PMIs in the euro bloc. Ahead in the day, US Initial Claims, Markit PMI and housing data will be in the limelight, exposing the pair to further pressure. In light of today’s releases in the euro zone, Analyst Martin van Vliet at ING Bank assessed, “today’s data are a reminder of the fragility and unevenness of the recovery. With inflation low and a sustained Eurozone recovery not yet assured, further ECB easing in June looks all but certain. At a minimum, we would expect a 10bp cut in both the refi rate and the deposit rate and an extension of the full allotment scheme beyond July 2015”.
EUR/USD levels to consider
As of writing the pair is losing 0.07% at 1.3675 with the next support at 1.3652 (low May 22) followed by 1.3635 (low May 21) and finally 1.3585 (low Feb.13). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).
EUR/USD capped by 1.3685
It seems the intraday upside remains limited by the 1.3685/90 area after the mixed results from the advanced PMIs in the euro bloc. Ahead in the day, US Initial Claims, Markit PMI and housing data will be in the limelight, exposing the pair to further pressure. In light of today’s releases in the euro zone, Analyst Martin van Vliet at ING Bank assessed, “today’s data are a reminder of the fragility and unevenness of the recovery. With inflation low and a sustained Eurozone recovery not yet assured, further ECB easing in June looks all but certain. At a minimum, we would expect a 10bp cut in both the refi rate and the deposit rate and an extension of the full allotment scheme beyond July 2015”.
EUR/USD levels to consider
As of writing the pair is losing 0.07% at 1.3675 with the next support at 1.3652 (low May 22) followed by 1.3635 (low May 21) and finally 1.3585 (low Feb.13). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).