EUR/USD is as snug as a bug in a rug around 1.36

By FXstreet.com | July 03, 2014 AAA

FXStreet (Moscow) - EUR/USD opened the day at 1.3609, slid to 1.3597 low, and fell asleep right there.

USD wears the pants

Draghi was mild, Draghi was dovish, but not aggressively dovish. He didn’t try to convince the market the QE is coming, but did hint on additional stimulus in case it was required. Thus, probably the key factor of yesterday’s plunge of the pair was not the EUR weakness, but the USD strength. Non-Farm Payrolls came out much better than expected, and even the April, and May readings were revised higher. Thus, the USD may be the one to determine the pair moves. The just released weaker than expected German Factory orders were completely ignored by the market. The downside is limited by 1.3582, and the upside – by 1.3652 resistance level.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3623, with support below at 1.3582, 1.3553 and 1.3512, with resistance above at 1.3652, 1.3693, and 1.3722. Hourly Moving Averages are mostly bearish, with the 200SMA at 1.3638 and the daily 20EMA flat at 1.3628. Hourly RSI is bearish at 34.

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