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EUR/USD eyes 1.3750 on better PMIs

FXStreet (Edinburgh) - The EUR is recovering the positive ground on Wednesday, pushing the EUR/USD back to gains in the proximity of 1.3750.

EUR/USD focus on GDP

The final prints from services PMI in Germany and the EMU came in above expectations in February, advancing to 55.9 and 52.6, respectively. Next on tap will be EMU’s Q4 GDP, where prior surveys point to an expansion of 0.3% inter-quarter. With the ADP report and ISM Non-Manufacturing in the US calendar, spot would remain under pressure although the better risk mood would limit pullbacks. “We would expect the euro to pop higher if we are correct and the ECB does nothing tomorrow. An eventual test of the 1.4000 level is feasible depending on the tone of President Draghi in the press conference”, observed Derek Halpenny, European Head of Global Markets Research at BTMU.

EUR/USD levels to consider

The pair is now advancing 0.02% at 1.3742 with the next resistance at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side, a breakdown of 1.3718 (low Mar.4) would target 1.3694 (low Feb.28) en route to 1.3693 (21-d MA).

Flash: AUD downside could be limited - UOB Group

Quek Ser Leang, Market Strategist at UOB Group believes that AUD/USD downside ahead could be limited.
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