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31 Mar 2014
EUR/USD bulls aims at 1.3800 as low EZ inflation is no big deal for them
FXStreet (Moscow) - EUR/USD absorbed offers located around 1.3770 and rushed higher. The resistance of 1.3800 is within reach now.
Much adore about CPI
Today’s CPI data came out lower than expected, though, comments from Buba’s Weidmann that the central bank should wait for second round effects before making harsh decisions, reduced the probability that ECB will raise its interest rate this week. These figures may add pressure on the ECB, but they are hardly enough to trigger the central bank’s action. Moreover some analysts expect that this release will mark the bottom of this inflation cycle and the CPI will start creeping higher from here. EUR/USD reacted violably as the pair dropped to intraday low of 1.3721, but quickly recovered to the levels preceding the publication and went on growing. Now that the pair broke above the area of demand at 1.3770, the resistance of 1.3800 comes into sight. This level may cap or at least slow the bullish movement.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3743, with support below at 1.3713, 1.3674 and 1.3644, with resistance above at 1.3782, 1.3812, and 1.3851. Hourly Moving Averages are bearish, with the 200SMA at 1.3807 and the daily 20EMA bearish at 1.3801. Hourly RSI is neutral at 47.
Much adore about CPI
Today’s CPI data came out lower than expected, though, comments from Buba’s Weidmann that the central bank should wait for second round effects before making harsh decisions, reduced the probability that ECB will raise its interest rate this week. These figures may add pressure on the ECB, but they are hardly enough to trigger the central bank’s action. Moreover some analysts expect that this release will mark the bottom of this inflation cycle and the CPI will start creeping higher from here. EUR/USD reacted violably as the pair dropped to intraday low of 1.3721, but quickly recovered to the levels preceding the publication and went on growing. Now that the pair broke above the area of demand at 1.3770, the resistance of 1.3800 comes into sight. This level may cap or at least slow the bullish movement.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3743, with support below at 1.3713, 1.3674 and 1.3644, with resistance above at 1.3782, 1.3812, and 1.3851. Hourly Moving Averages are bearish, with the 200SMA at 1.3807 and the daily 20EMA bearish at 1.3801. Hourly RSI is neutral at 47.