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5 Mar 2014
Flash: EUR/USD in wait and see mode - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that Wednesday is resulting into a pretty quiet day for the EUR/USD, confined to a tight 20 pips range ever since Asian opening.
Key Quotes
“Stocks in the Far East edged higher following US indexes overwhelming advance, preventing dollar from rising, albeit European currencies were unable to catch up momentum. Local share markets are trading up yet with limited gains, mostly because of uncertainty based on 2 main factors: the crisis in Crimea is far from over and the back and forth from politicians and news, keeps players on their toes.”
“Second, tomorrow the ECB will have its monthly economic meeting, and market is pricing in the possibility of a rate cut. However, chances of such move seem limited after today Services PMI in the region came out overall positive, as Manufacturing ones did yesterday, a nice sign of growth in the area.”
“Therefore, the EUR/USD stands in wait and see mode hovering a few pips above the 1.3700 level, and in fact, presenting a slightly bearish tone in the 4 hours chart, as per trading below its 20 SMA and with indicators directionless below their midlines.”
“The 1.3710 level, 61.8% retracement of its latest bullish run comes as immediate support, followed by 1.3680 and 1.3640, past week low. Indeed, seems we should not expect much from the pair today, yet if somehow risk sentiment gets a boost from Russia, the 1.3640 low is the lowest level the pair can achieve today.”
“On the other hand, the upside is now being limited by 1.3743, post PMIs and daily high, so recovers above it may favor an advance towards 1.3770/90 price zone, expected top until ECB.”
Key Quotes
“Stocks in the Far East edged higher following US indexes overwhelming advance, preventing dollar from rising, albeit European currencies were unable to catch up momentum. Local share markets are trading up yet with limited gains, mostly because of uncertainty based on 2 main factors: the crisis in Crimea is far from over and the back and forth from politicians and news, keeps players on their toes.”
“Second, tomorrow the ECB will have its monthly economic meeting, and market is pricing in the possibility of a rate cut. However, chances of such move seem limited after today Services PMI in the region came out overall positive, as Manufacturing ones did yesterday, a nice sign of growth in the area.”
“Therefore, the EUR/USD stands in wait and see mode hovering a few pips above the 1.3700 level, and in fact, presenting a slightly bearish tone in the 4 hours chart, as per trading below its 20 SMA and with indicators directionless below their midlines.”
“The 1.3710 level, 61.8% retracement of its latest bullish run comes as immediate support, followed by 1.3680 and 1.3640, past week low. Indeed, seems we should not expect much from the pair today, yet if somehow risk sentiment gets a boost from Russia, the 1.3640 low is the lowest level the pair can achieve today.”
“On the other hand, the upside is now being limited by 1.3743, post PMIs and daily high, so recovers above it may favor an advance towards 1.3770/90 price zone, expected top until ECB.”