29 Apr 2014
EUR/USD mocks at Draghi's efforts and set sights at 1.3880 resistance
FXStreet (Moscow) - EUR/USD is climbing higher in Asia as the pair moved to 1.3861 after opening at 1.3849
Risk vs. inflation
EUR/USD lived through a volatile session on Monday as the pair slumped to intraday lows early in Asia on the back of further Russia- Ukraine crisis escalation, but reversed losses and pushed to 1.3878 when the European players joined the game. Ironically, German Import Price Index came out lower than expected (-0.6% m/m, -3.3% y/y against forecasted -0.1% m\m, -2.7% y/y), increasing chances that today’s CPI will fail to meet expectations and put more pressure on ECB. Though markets seemed to look the other way. Today the European session starts with German ПАЛ Consumer Confidence index that is expected to stay unchanged at 8.5 in April. Strong figures might support EUR and push it yesterday’s high at 1.3878, though the investor are more likely to be focused on CPI data published later during the day. April y\y figure is expected to climb to 1.3% from 0.9% in March, but negative surprises are possible. If the data fails to live up to expectations EUR/USD may dip to 1.3820 and then to the key support level of 1.3800.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3848, with support below at 1.3817, 1.3782 and 1.3751, with resistance above at 1.3883, 1.3914, and 1.3949. Hourly Moving Averages are bullish, with the 200SMA at 1.3824 and the daily 20EMA neutral at 1.3816. Hourly RSI is bullish at 53.
Risk vs. inflation
EUR/USD lived through a volatile session on Monday as the pair slumped to intraday lows early in Asia on the back of further Russia- Ukraine crisis escalation, but reversed losses and pushed to 1.3878 when the European players joined the game. Ironically, German Import Price Index came out lower than expected (-0.6% m/m, -3.3% y/y against forecasted -0.1% m\m, -2.7% y/y), increasing chances that today’s CPI will fail to meet expectations and put more pressure on ECB. Though markets seemed to look the other way. Today the European session starts with German ПАЛ Consumer Confidence index that is expected to stay unchanged at 8.5 in April. Strong figures might support EUR and push it yesterday’s high at 1.3878, though the investor are more likely to be focused on CPI data published later during the day. April y\y figure is expected to climb to 1.3% from 0.9% in March, but negative surprises are possible. If the data fails to live up to expectations EUR/USD may dip to 1.3820 and then to the key support level of 1.3800.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3848, with support below at 1.3817, 1.3782 and 1.3751, with resistance above at 1.3883, 1.3914, and 1.3949. Hourly Moving Averages are bullish, with the 200SMA at 1.3824 and the daily 20EMA neutral at 1.3816. Hourly RSI is bullish at 53.