EUR/USD ignored weaker Trade balance, and moved above 1.34

By FXstreet.com | August 07, 2014 AAA

FXStreet (Moscow) - EUR/USD recovered from 1.3343 reaching 1.3407 high by the moment, as the weaker than expected Trade data turned out not that bad.

The ECB first results

German Trade Balance came out below expectations with 16.2B vs 17.5B. However, it happened rather due to the stronger imports, than to the slowing trade activity. The exports and imports exceeded expectations actually, helping the pair to recover above 1.34, but for how long? Now, when Draghi made every attempt to remind the market that the monetary course of the ECB is significantly different from the one of the Fed, and the BOE, the market has no reason to buy the euro any more. It doesn’t mean we will see more selling ahead – if there are no new key disappointments from the EMU economic reports, the single currency may stay in narrow ranges, waiting for the ECB stimulus to give first results.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3364, with support below at 1.3335, 1.3306 and 1.3277, with resistance above at 1.3393, 1.3422, and 1.3451. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.3396 and the daily 20EMA bearish at 1.3456. Hourly RSI is bearish at 45.

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