FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes the conditions surrounding the EUR/USD as we are getting two sides to the story here.

Key Quotes:

"Yesterday, EUR reached a multi-month high, flirting with 1.37; however into the NA open it has softened, down 0.1%”.

“Recent data has been mixed; the Eurozone manufacturing PMI suggest expansion but at a slower rate than expected; the flash CPI hints at a bottoming in disinflationary pressures; while today’s PPI warns of ongoing disinflationary pressures."

"We expect it is the above that will shape the tone at the ECB. Last month’s actions were dramatic but it is still early to judge the impact."

"Accordingly we expect a fairly cautious tone, but one the market is prepared for. For EUR this implies it should be comfortable trading in a broad range of 1.35 to 1.3750."

"EUR/USD short-term technicals: bullish—most studies warn of upside momentum; however a break and close below Monday’s open of 1.3647 would warn of fading upside pressure. Support lies at 1.3600; while resistance comes in at the 100-day MA at 1.3740."

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Webinar: Greek Gaps in Focus- Technical Setups in Play this Week

  2. Forex News

    Keep an Eye on these Currency Pairs as Volatility Risks Remain High

  3. Forex News

    EUR/USD finds support around 1.1000

  4. Forex News

    EUR/USD: likely to retest 1.0950/60 – FXStreet

  5. Forex News

    EUR/USD weaker, towards 1.10

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!