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28 Feb 2014
Flash: EUR/USD: Skyrocketing through 1.3800 – FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet, notes that EUR/USD rose past 1.3800 on higher-than-expected Eurozone CPI and a rally toward 1.3900 seems now possible.
Key Quotes
"The EUR/USD surged to a fresh year high above 1.3800, adding over 80 pips with the release of EU preliminary CPI, up to 0.8% against the expected 0.7%. Despite the reading is quite poor considering ECB ideal is 2.0%, the news has been welcome as it diminishes chances of deflation in Europe, pointing for a limited, slow improvement, but improvement at least, in line with what the Central Bank has been expecting".
"The 4 hours chart shows price accelerated strongly above its 20 SMA, while indicators hold around their midlines, still not reflecting latest price developments. Nevertheless, price stands well above former highs around 1.3770, now immediate support, and as long as above it the upside is favored towards 1.3830 price zone, where the daily descendant trend line coming from the all time high of 1.6038 should offer some intraday resistance. If the level is taken however, the pair may accelerate higher, looking to test the 1.3900 area, past December high".
"As comment above, 1.3770 should contain the downside, with dips down to that level probably attracting buyers. Only below 1.3750 the pair may reverse current bullish tone, and fell back to the 1.3700 price zone".
Key Quotes
"The EUR/USD surged to a fresh year high above 1.3800, adding over 80 pips with the release of EU preliminary CPI, up to 0.8% against the expected 0.7%. Despite the reading is quite poor considering ECB ideal is 2.0%, the news has been welcome as it diminishes chances of deflation in Europe, pointing for a limited, slow improvement, but improvement at least, in line with what the Central Bank has been expecting".
"The 4 hours chart shows price accelerated strongly above its 20 SMA, while indicators hold around their midlines, still not reflecting latest price developments. Nevertheless, price stands well above former highs around 1.3770, now immediate support, and as long as above it the upside is favored towards 1.3830 price zone, where the daily descendant trend line coming from the all time high of 1.6038 should offer some intraday resistance. If the level is taken however, the pair may accelerate higher, looking to test the 1.3900 area, past December high".
"As comment above, 1.3770 should contain the downside, with dips down to that level probably attracting buyers. Only below 1.3750 the pair may reverse current bullish tone, and fell back to the 1.3700 price zone".