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3 Mar 2014
Flash: EUR/USD: Overall bullish despite risk – FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet note that the EUR/USD holds an overall bullish tone despite risk aversion amid Ukrainian political turmoil, and a break above 1.3800 should lead to a quick advance up to 1.3870.
Key Quotes
"The EUR/USD trades steady below the 1.3800 level this Monday, unable to recover despite for the most, local manufacturing PMIs overcame expectations, exception made by Italian one. But the majority showed signs of expansion, indicating a modest but steady recovery all through Europe. Yet the market is not just about macroeconomic data today: Russia troops invaded Crimea on Sunday, leading to strong risk aversion rallies across the world, and sending Asian indexes into deep red, with the Nikkei losing over 1.8%. European ones are in no better shape, with the DAX down 2.2%, while US futures also trade in red".
"The strong risk sentiment favors overall Japanese yen due to its safe haven condition, while greenback gains remain pretty much subdued due to its self-weakness. However, the negative mood is so far enough to prevent risk assets advance".
"Technically, the EUR/USD 4 hours chart shows price has filled the weekly opening gap, albeit failure to advance beyond it, struggling now around the 23.6% retracement of its latest short term advance. Indicators in the same time frame stand in positive territory but lacking clear strength at the time being, while the 38.2% of the same rally around 1.3750 contained the downside for now. Overall bullish, price acceleration above 1.3800 should lead to a quick advance up to 1.3830 first, and once above trigger stops and continue towards 1.3870".
"On the other hand, a break below mentioned Fibonacci support may see the pair falling towards 1.2680/1.3700 area, where buyers await".
Key Quotes
"The EUR/USD trades steady below the 1.3800 level this Monday, unable to recover despite for the most, local manufacturing PMIs overcame expectations, exception made by Italian one. But the majority showed signs of expansion, indicating a modest but steady recovery all through Europe. Yet the market is not just about macroeconomic data today: Russia troops invaded Crimea on Sunday, leading to strong risk aversion rallies across the world, and sending Asian indexes into deep red, with the Nikkei losing over 1.8%. European ones are in no better shape, with the DAX down 2.2%, while US futures also trade in red".
"The strong risk sentiment favors overall Japanese yen due to its safe haven condition, while greenback gains remain pretty much subdued due to its self-weakness. However, the negative mood is so far enough to prevent risk assets advance".
"Technically, the EUR/USD 4 hours chart shows price has filled the weekly opening gap, albeit failure to advance beyond it, struggling now around the 23.6% retracement of its latest short term advance. Indicators in the same time frame stand in positive territory but lacking clear strength at the time being, while the 38.2% of the same rally around 1.3750 contained the downside for now. Overall bullish, price acceleration above 1.3800 should lead to a quick advance up to 1.3830 first, and once above trigger stops and continue towards 1.3870".
"On the other hand, a break below mentioned Fibonacci support may see the pair falling towards 1.2680/1.3700 area, where buyers await".