25 Mar 2014
EUR/USD finds a solid footing
FXStreet (Guatemala) - EUR/USD has been a turbulent time of late but it seems to be settling into a consolidative phase on 1.3820 having rallied back losses of yesterdays fat finger.
EUR/USD slid from close to 1.3880 resistance mark yesterday and started scoring losses way down at 1.3750 on todays business before a rally back onto the 1.34 handle. Strategists at TD Securities noted the recent activity and said, “EUR/USD’s melt up on nothing (“fat finger” being blamed but no-one seemed at all clued at the time) yesterday might give the impression of a rebound about to unfold and reverse some of last week’s losses but we doubt the move will extend too far”, adding, “There was no fundamental reason behind the EUR rise—that we, or anyone else we spoke to, can point to as the justification for the rally—so we rather think this gives the market an opportunity to fade EUR strength”.
EUR/USD pain on weaker EZ data
The TD Securities strategists went on to note the data front and explained, “There then Weaker IFO data and comments from ECB’s Weidmann, suggesting that a QE programme for the Eurozone is not out of the question and that negative rates could counter the impact of a stronger EUR have served to cap gains in European trade; intraday, we think the market has peaked and reversed at 1.3850. Losses below 1.3765—trend support, break down point and yesterday’s low more or less—will push the EUR sharply lower”.
EUR/USD Levels
The 20 DMA is 1.3820, the 50 DMA is 1.3707 and the 200 DMA is 1.3497. RSI (14) reads 52.34. Supports are ascending from 1.3749, 1.3760, 1.3785, 1.3804. Spot is 1.3823 while resistances are 1.3851, 1.3885, 1.3899 and 1.3924.
EUR/USD slid from close to 1.3880 resistance mark yesterday and started scoring losses way down at 1.3750 on todays business before a rally back onto the 1.34 handle. Strategists at TD Securities noted the recent activity and said, “EUR/USD’s melt up on nothing (“fat finger” being blamed but no-one seemed at all clued at the time) yesterday might give the impression of a rebound about to unfold and reverse some of last week’s losses but we doubt the move will extend too far”, adding, “There was no fundamental reason behind the EUR rise—that we, or anyone else we spoke to, can point to as the justification for the rally—so we rather think this gives the market an opportunity to fade EUR strength”.
EUR/USD pain on weaker EZ data
The TD Securities strategists went on to note the data front and explained, “There then Weaker IFO data and comments from ECB’s Weidmann, suggesting that a QE programme for the Eurozone is not out of the question and that negative rates could counter the impact of a stronger EUR have served to cap gains in European trade; intraday, we think the market has peaked and reversed at 1.3850. Losses below 1.3765—trend support, break down point and yesterday’s low more or less—will push the EUR sharply lower”.
EUR/USD Levels
The 20 DMA is 1.3820, the 50 DMA is 1.3707 and the 200 DMA is 1.3497. RSI (14) reads 52.34. Supports are ascending from 1.3749, 1.3760, 1.3785, 1.3804. Spot is 1.3823 while resistances are 1.3851, 1.3885, 1.3899 and 1.3924.