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20 May 2014
EUR/USD unable to deviate from 1.3700
FXStreet (Córdoba) - The EUR/USD has climbed back above 1.3700 to extend its consolidation phase, following a short-lived drop.
The EUR/USD fell to a daily low of 1.3677 during the European session but as it has been the case lately, the move lacked follow-through and the pair returned to its comfort zone shortly after.
It's been a long time since a Spiegel report could trigger EUR reaction. Today German Spiegel reported that at the June 6 meeting the ECB wants to cut the main rate to a record low of 0.15% from 0.25% actual and the deposit rate to -0.1% from 0.0% presently. The Spiegel also reported Draghi is considering reducing the number of meetings of the Governing Council to just 3 or 4 a year to reduce the amount of speculation.
However, the EUR/USD has barely moved and continues to trade at the 1.3705 area, virtually unchanged since opening. There is no major data scheduled for the rest of the day so focus will remain on Fed speakers ahead of FOMC minutes tomorrow.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that technical readings are slightly bearish thus in neutral territory. “A break below 1.3640/60 strong static support is required to confirm a move lower that may extend in time, while bears will keep the lead as long as price holds below 1.3745 resistance zone”, the analyst commented.
Bednarik locates next support levels at 1.3690, 1.3650 and 1.3610, while she sees resistances at 1.3710, 1.3745 and 1.3780.
The EUR/USD fell to a daily low of 1.3677 during the European session but as it has been the case lately, the move lacked follow-through and the pair returned to its comfort zone shortly after.
It's been a long time since a Spiegel report could trigger EUR reaction. Today German Spiegel reported that at the June 6 meeting the ECB wants to cut the main rate to a record low of 0.15% from 0.25% actual and the deposit rate to -0.1% from 0.0% presently. The Spiegel also reported Draghi is considering reducing the number of meetings of the Governing Council to just 3 or 4 a year to reduce the amount of speculation.
However, the EUR/USD has barely moved and continues to trade at the 1.3705 area, virtually unchanged since opening. There is no major data scheduled for the rest of the day so focus will remain on Fed speakers ahead of FOMC minutes tomorrow.
EUR/USD technical outlook
Valeria Bednarik, chief analyst at FXStreet notes that technical readings are slightly bearish thus in neutral territory. “A break below 1.3640/60 strong static support is required to confirm a move lower that may extend in time, while bears will keep the lead as long as price holds below 1.3745 resistance zone”, the analyst commented.
Bednarik locates next support levels at 1.3690, 1.3650 and 1.3610, while she sees resistances at 1.3710, 1.3745 and 1.3780.