EUR/USD is on the way to Thursday highs despite PPI

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Moscow) - EUR/USD moves on to yesterday highs reaching 1.3633 by the moment, but weaker than expected PPI data stop the rise further.

ECB and Fed – what’s the difference?

The PPI numbers out of Germany came out at -0.2% m/m, -0.8% y/y vs 0.0% m/m, -0.7% y/y expected. The pair practically ignored the data, sliding just a couple of pips lower. Although the ECB position is much weaker than the Fed’s, the euro is still popular, and still feels comfortable above 1.36 even with deposit rates at negative territory. The thing is that the European monetary authorities has already done a lot, and the investors may realize that it will take time to see any new steps on the easy path. As for the Fed, the pace of tapering has been too moderate, and too predictable, so the markets want to see more – at least in the form of higher forecasts or more aggressive comments. This market sentiment factor may have its impact on the pair moves in short-term.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3611, with support below at 1.3579, 1.3550 and 1.3518, with resistance above at 1.3640, 1.3672, and 1.3701. Hourly Moving Averages are bullish, with the 200SMA at 1.3561 and the daily 20EMA flat at 1.3609. Hourly RSI is bullish at 59.

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