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EUR/USD Recovery Efforts Remain Soggy

EUR
MNI (London)
  • The corrective pullback away from Tuesday's high of $1.2169 extended through Wednesday's trade to a low of $1.2023, holding shy of the Feb08 low of $1.2020.
  • Rate recovered to $1.2047 before closing the day at $1.2041.
  • FOMC Minutes provided no major surprises, basically matched recent Fedspeak on retaining an accommodative approach. US data Wednesday also came in on the stronger side of expectations.
  • Consolidation in Asia though rate was able to slightly extend the recovery to $1.2050 before it drifted off to $1.2036($1.2032 rising support off Feb05 low) , settling around $1.2045 into Europe.
  • Support remains into $1.2020 ahead of $1.2000 ($1.2003 100-dma, 76.4% $1.1952-1.2169), a break to expose $1.1985/75 ahead of stronger interest into $1.1950 ($1.1952 Feb05 low). Resistance $1.2050 ahead of $1.2080/95 then $1.2110/20.
  • UST yields, US fiscal stimulus headlines and Fedspeak remain key drivers.
  • ECB publishes its 2020 Financial Report at 1000GMT, Minutes of the Jan20-21 meeting at 1230GMT. EZ Consumer Confidence at 1500GMT.
  • US Weekly Jobless Claims, Housing Starts/Building Permits and Phila Fed at 1330GMT.
  • Fed Bostic speaks at 1500GMT.
  • MNI Techs: The price pattern on Feb 16 is a bearish candle - a shooting star. Following yesterday's extension lower, scope is seen for a deeper pullback with the next support at $1.2020, Feb 8 low. A break of this level would expose key support at $1.1952, Feb 5 low. Gains above yesterday's high of 1.2110 would refocus attention on key resistance at $1.2169, Tuesday's high.
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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