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17 Mar 2014
EUR/USD off highs, back to 1.3930
FXStreet (Edinburgh) - The single currency is now returning to the 1.3930 area against the greenback, with the EUR/USD coming down from beyond 1.3960.
EUR/USD testing ytd peaks
The pair was rejected below 2014 highs around 1.3950, recovering from overnight troughs in levels sub-1.3880. Despite the lower-than-expected consumer prices in the UME during February (0.7% act. vs. 0.8% exp.) and the upbeat data from the US industrial production, spot managed to gather steam and leave behind the 1.3900 handle. “We expect economic data to bounce back in Q2 as a severely disrupted supply chain gets back to work and pent up demand is satisfied… We maintain our long held preference for stocks over bonds. We expect to see dollar strength and a rise in bond yields over the next few months”, commented Trevor Greetham, Director of Asset Allocation and Portfolio Manager of Fidelity’s Multi Asset funds.
EUR/USD key levels
The pair is now up 0.07% at 1.3924 and a surpass of 1.3948 (high Mar.17) would target 1.3967 (2014 high Mar.13) en route to 1.4000 (psychological level). On the flip side, the initial support aligns at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12).
EUR/USD testing ytd peaks
The pair was rejected below 2014 highs around 1.3950, recovering from overnight troughs in levels sub-1.3880. Despite the lower-than-expected consumer prices in the UME during February (0.7% act. vs. 0.8% exp.) and the upbeat data from the US industrial production, spot managed to gather steam and leave behind the 1.3900 handle. “We expect economic data to bounce back in Q2 as a severely disrupted supply chain gets back to work and pent up demand is satisfied… We maintain our long held preference for stocks over bonds. We expect to see dollar strength and a rise in bond yields over the next few months”, commented Trevor Greetham, Director of Asset Allocation and Portfolio Manager of Fidelity’s Multi Asset funds.
EUR/USD key levels
The pair is now up 0.07% at 1.3924 and a surpass of 1.3948 (high Mar.17) would target 1.3967 (2014 high Mar.13) en route to 1.4000 (psychological level). On the flip side, the initial support aligns at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12).