Back
7 Mar 2014
EUR/USD pushes trough 1.3900
FXStreet (Edinburgh) - The EUR/USD is now posting +2-year highs in the area of 1.3910/15 as the bid tone accelerates.
EUR/USD now points towards… 1.40?
The pair quickly left behind the interim barrier at 1.3894 (2013 peaks) and advanced to the 1.3910/15 area, levels last seen in October 2011. The recent ECB failure to deliver further monetary easing continues to add to the already upbeat sentiment on Friday, as we get closer to today’s US Non Farm Payrolls (149K exp.). In the opinion of Derek Halpenny, European Head of Global Markets Research at BTMU, “President Draghi was quite explicit in stating that a 10% nominal effective exchange rate appreciation would shave 0.5pt off inflation. That’s higher than other analysis done by the ECB in the past but does suggest that a spike in EUR/USD above the 1.4000 level may well force the ECB to act”.
EUR/USD levels to watch
At the moment the pair is up 0.33% at 1.3903 with the immediate resistance at 1.4000 (psychological level) followed by 1.4172 (high Oct.31 2011) and then 1.420 (high Oct.38 2011). On the flip side, a breakdown of 1.3721 (low Mar.6) would open the door to 1.3707 (low Mar.5) and finally 1.3694 (low Feb.28).
EUR/USD now points towards… 1.40?
The pair quickly left behind the interim barrier at 1.3894 (2013 peaks) and advanced to the 1.3910/15 area, levels last seen in October 2011. The recent ECB failure to deliver further monetary easing continues to add to the already upbeat sentiment on Friday, as we get closer to today’s US Non Farm Payrolls (149K exp.). In the opinion of Derek Halpenny, European Head of Global Markets Research at BTMU, “President Draghi was quite explicit in stating that a 10% nominal effective exchange rate appreciation would shave 0.5pt off inflation. That’s higher than other analysis done by the ECB in the past but does suggest that a spike in EUR/USD above the 1.4000 level may well force the ECB to act”.
EUR/USD levels to watch
At the moment the pair is up 0.33% at 1.3903 with the immediate resistance at 1.4000 (psychological level) followed by 1.4172 (high Oct.31 2011) and then 1.420 (high Oct.38 2011). On the flip side, a breakdown of 1.3721 (low Mar.6) would open the door to 1.3707 (low Mar.5) and finally 1.3694 (low Feb.28).