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12 Mar 2014
EUR/USD returning to 1.3880?
FXStreet (Edinburgh) - The shared currency is now posting fresh session highs, pushing the EUR/USD back to the 1.3870/75 region on Wednesday.
EUR/USD firmer, resilient
Resiliency seems to be the name of the game for the EUR, with pullbacks unable to break the lower band of 1.3800 so far. In the same tone, softer-than-expected Industrial Production in the euro area during January passed unnoticed amongst traders. In light of the data release, Analyst Peter Vanden Houte at ING Bnak NV, assessed “The main culprit of the decline was again a 2.5% fall in energy production, potentially due to the soft winter weather, though intermediate goods and durable consumer goods also saw small declines in output… While the headline figure is worse than expected, the disappointing energy component probably masked the underlying improvement. But even if domestic demand is likely to become a bit more supportive to growth, the upturn remains fragile. The Eurozone still needs export growth to solidify the recovery”.
EUR/USD levels to watch
The pair is now advancing 0.04% at 1.3866 and a break above 1.3897 (high Mar.10) would open the door to 1.3915 (2014 high Mar.7) and finally 1.400 (psychological level). On the downside, the immediate support lines up at 1.3834 (low Mar.11) followed by 1.3811 (23.6% of 1.3477-1.3915) and then 1.3800 (psychological level).
EUR/USD firmer, resilient
Resiliency seems to be the name of the game for the EUR, with pullbacks unable to break the lower band of 1.3800 so far. In the same tone, softer-than-expected Industrial Production in the euro area during January passed unnoticed amongst traders. In light of the data release, Analyst Peter Vanden Houte at ING Bnak NV, assessed “The main culprit of the decline was again a 2.5% fall in energy production, potentially due to the soft winter weather, though intermediate goods and durable consumer goods also saw small declines in output… While the headline figure is worse than expected, the disappointing energy component probably masked the underlying improvement. But even if domestic demand is likely to become a bit more supportive to growth, the upturn remains fragile. The Eurozone still needs export growth to solidify the recovery”.
EUR/USD levels to watch
The pair is now advancing 0.04% at 1.3866 and a break above 1.3897 (high Mar.10) would open the door to 1.3915 (2014 high Mar.7) and finally 1.400 (psychological level). On the downside, the immediate support lines up at 1.3834 (low Mar.11) followed by 1.3811 (23.6% of 1.3477-1.3915) and then 1.3800 (psychological level).