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EUR/USD Pressures $1.1990/1.2000

EUR
MNI (London)
  • USD remained under pressure through Wednesday's session, EUR/USD breaking the European morning high of $1.1974 before advancing toward stronger resistance at $1.1990.
  • Rate touched a high of $1.1987 in post fix trade, backed off to $1.1970 before edging back to $1.1980 into the close.
  • Risk appetite, along with Fed Powell reiterating previous comments concerning what would be needed before tapering/hike in rates would be considered.
  • Asia took over the bid tone, pushed rate up to challenge the $1.1990 level. Traders reported that difficulty in getting a print above this level though nothing major was showing on platforms (suggested iceberg offer). This failure at $1.1990 will support Wednesday talk suggesting a $1.1700-1.2000 DNT option structure is in play(no confirmation).
  • Rate backed off, finding support again at $1.1970 ahead of the European open.
  • Support $1.1970, $1.1950, break to expose $1.1930/10 ahead of $1.1895 and $1.1860.
  • Resistance remains from $1.1990 through to $1.2000, break to open a move to $1.2025/30
  • Germany, France and Italy publish final CPI data at 0600GMT, 0645GMT, 0800GMT respectively. Focus on US Retail Sales, Initial Jobless Claims, Empire Mfg at 1230GMT, US IP, Cap.Ut. at 1315GMT, Business Inventories 1400GMT.
  • Fed Daly 1800GMT, Fed Mester 2000GMT.
  • MNI Techs: EURUSD is holding onto gains and has tested the next key resistance of 1.1990, Mar 11 high. A break of this level would strengthen a bullish argument and signal scope for an extension of recent gains. The recent breach of the 50-day EMA is a bullish development and S/T momentum signals point north. On the downside, initial firm support is seen at 1.1861, Apr 7 and 8 low. A break would signal the end of the current recovery.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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