EUR/USD bulls won't give up easily

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Moscow) - EUR/USD is trying to stage an upside correction early in Asia as the pair rebounded from the opening level of 1.3527 and touched 1.3540.

1.3500 is a hard nut to crack

EUR/USD is under pressure, but it is not ready to break below 1.3500. Not yet. Investors are trying to come to grips with the idea that the ECB is determined to implement aggressive QE program. No fundamental grounds, only technical factors and speculations. Let’s see how long EUR bears will be satisfied with them before they want more evidence. French CPI numbers and EZ industrial production report may give us some food for though, but they will hardly be able to change the sentiments, unless actual numbers deviate strongly from the expectations. Note that negative surprises are likely to have a greater impact on investors mood. From the technical point of view, 1.3520 is seen as the first line of support, while the resistance of 1.3550 is likely to cap the upside.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3537, with support below at 1.3516, 1.3500 and 1.3479, with resistance above at 1.3553, 1.3574, and 1.3590. Hourly Moving Averages are bullish, with the 200SMA at 1.3548 and the daily 20EMA at 1.3639. Hourly RSI is bullish at 74.

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