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31 Mar 2015
EUR/USD pulled down by EZ inflation and Greece – FXStreet
FXStreet (Barcelona) - With Eurozone inflation remaining low, and no solution for the Greece funding issue, EUR/USD trades under pressure, notes Valeria Bednarik, Chief Analyst at FXStreet, and further expects a break below 1.0710 to confirm a probable move towards 1.0660.
Key Quotes
“The EUR/USD pair extended its decline this Tuesday, down to 1.0712 in the European morning on broad dollar strength.”
“The pair found some short term demand around the 23.6% of the 1.1533/1.0461 monthly slide, albeit the recovery remains shallow, limited around 1.0760.”
“Fundamentally, news came from Germany and resulted for the most positive, with unemployment down to 6.4% in March and Retail Sales up 3.6% in February, slightly below the 3.7% expected.”
“But the good news were not enough to overshadow the fact that Greece and the EU have not yet found a solution to the debt problem of the troubled country that is in a brink of running out of cash and that the EZ inflation remains extremely low.”
“During the US session, several FOMC members will be offering different speeches, which can affect the dollar accordingly to their hawkishness when it comes to a rate hike.”
“In the meantime, the 1 hour chart shows that the price extended far below its moving averages, whist the technical indicators correct oversold readings, aiming higher below their mid-lines.”
“In the 4 hours chart however the technical outlook favors the downside, with a break below 1.0710 required to confirm a new leg south towards the 1.0660 price zone.”
“Support levels: 1.0710 1.0660 1.0620”
“Resistance levels: 1.0760 1.0800 1.0840”
Key Quotes
“The EUR/USD pair extended its decline this Tuesday, down to 1.0712 in the European morning on broad dollar strength.”
“The pair found some short term demand around the 23.6% of the 1.1533/1.0461 monthly slide, albeit the recovery remains shallow, limited around 1.0760.”
“Fundamentally, news came from Germany and resulted for the most positive, with unemployment down to 6.4% in March and Retail Sales up 3.6% in February, slightly below the 3.7% expected.”
“But the good news were not enough to overshadow the fact that Greece and the EU have not yet found a solution to the debt problem of the troubled country that is in a brink of running out of cash and that the EZ inflation remains extremely low.”
“During the US session, several FOMC members will be offering different speeches, which can affect the dollar accordingly to their hawkishness when it comes to a rate hike.”
“In the meantime, the 1 hour chart shows that the price extended far below its moving averages, whist the technical indicators correct oversold readings, aiming higher below their mid-lines.”
“In the 4 hours chart however the technical outlook favors the downside, with a break below 1.0710 required to confirm a new leg south towards the 1.0660 price zone.”
“Support levels: 1.0710 1.0660 1.0620”
“Resistance levels: 1.0760 1.0800 1.0840”