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13 Mar 2014
Flash: EUR/USD: “Hello 1.4000, here I come” - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst comments that EUR/USD is trading at fresh year highs, so far set at 1.3966 today, and if you read my weekend reports, then you will see why she remarked so strongly the market is not concerned.
Key Quotes
“Now the ECB inaction is being taken as EUR bullish, and with France inflation overcoming expectations this Thursday, markets are disregarding action also for next month.”
“The Russia/Ukraine crisis is still there in standby, and will probably see some escalating over the weekend with the Crimea referendum but market does not bother thinking about that right now. Finally, Chinese slowdown has been acknowledge by Beijing, albeit Chinese Premier Li Keqiang stated they are ready to tolerate slower economic expansion this year while developing reforms aimed at providing longer-term and more sustainable growth.”
“Bottom line, confidence rules and so does the EUR that accelerated above the roof of the daily ascendant channel against the greenback, with the pair now holding above such roof. The 4 hours chart shows a strong upward momentum with RSI heading higher around 77, and 20 SMA beginning to gain bullish slope well below current price, all of which suggest there’s room for more: a price acceleration above mentioned daily high should lead to a continuation towards the key 1.4000 figure today, as long as pullbacks find buyers around 1.3920, former high.”
“If price however gives up below 1.3910, the risk turns to the downside and the pair may extend the bearish move down to 1.3850/70 price zone in the short term.”
Key Quotes
“Now the ECB inaction is being taken as EUR bullish, and with France inflation overcoming expectations this Thursday, markets are disregarding action also for next month.”
“The Russia/Ukraine crisis is still there in standby, and will probably see some escalating over the weekend with the Crimea referendum but market does not bother thinking about that right now. Finally, Chinese slowdown has been acknowledge by Beijing, albeit Chinese Premier Li Keqiang stated they are ready to tolerate slower economic expansion this year while developing reforms aimed at providing longer-term and more sustainable growth.”
“Bottom line, confidence rules and so does the EUR that accelerated above the roof of the daily ascendant channel against the greenback, with the pair now holding above such roof. The 4 hours chart shows a strong upward momentum with RSI heading higher around 77, and 20 SMA beginning to gain bullish slope well below current price, all of which suggest there’s room for more: a price acceleration above mentioned daily high should lead to a continuation towards the key 1.4000 figure today, as long as pullbacks find buyers around 1.3920, former high.”
“If price however gives up below 1.3910, the risk turns to the downside and the pair may extend the bearish move down to 1.3850/70 price zone in the short term.”