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19 Feb 2014
EUR/USD slips back to 1.3760
FXStreet (Edinburgh) - The shared currency keeps marginal gains on Wednesday against the greenback, now taking the EUR/USD to the area of 1.3760/55.
EUR/USD in 2-month highs
After printing fresh 2-month highs beyond 1.3770, spot is now giving away part of those gains and hovering over 1.3760/55, as the risk appetite seems to be taking a breather. No relevant docket in the euro area would leave investors looking at the US docket as the main catalyst for price action, with the FOMC minutes taking centre stage and seconded by some Fedspeak (Lockhart and Bullard), Building Permits and Housing Starts. In the view of Christin Tuxen, Senior Analyst at Danske Bank, “While improving in both regions, the relative growth outlook is set to support the Fed moving away from extremely accommodative policy measures long before the ECB. This should set the scene for a cyclical USD uptrend, as the Fed will be looking to hike rates way ahead of its euro-zone counterpart”.
EUR/USD relevant levels
At the moment the pair is up 0.02% at 1.3761 facing the next resistance at 1.3773 (high Feb.19) followed by 1.3777 (2014 high Jan.2) and then 1.3796 (76.4% of 1.3894-1.3477). On the downside, a breach of 1.3695 (low Feb.18) would target 1.3685 (low Feb.17) en route to 1.3674 (low Feb.14)
EUR/USD in 2-month highs
After printing fresh 2-month highs beyond 1.3770, spot is now giving away part of those gains and hovering over 1.3760/55, as the risk appetite seems to be taking a breather. No relevant docket in the euro area would leave investors looking at the US docket as the main catalyst for price action, with the FOMC minutes taking centre stage and seconded by some Fedspeak (Lockhart and Bullard), Building Permits and Housing Starts. In the view of Christin Tuxen, Senior Analyst at Danske Bank, “While improving in both regions, the relative growth outlook is set to support the Fed moving away from extremely accommodative policy measures long before the ECB. This should set the scene for a cyclical USD uptrend, as the Fed will be looking to hike rates way ahead of its euro-zone counterpart”.
EUR/USD relevant levels
At the moment the pair is up 0.02% at 1.3761 facing the next resistance at 1.3773 (high Feb.19) followed by 1.3777 (2014 high Jan.2) and then 1.3796 (76.4% of 1.3894-1.3477). On the downside, a breach of 1.3695 (low Feb.18) would target 1.3685 (low Feb.17) en route to 1.3674 (low Feb.14)