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EUR/USD decline halted near 1.3640

FXStreet (Edinburgh) - The EUR’s intraday decline seems to have found decent support in the vicinity of 1.3640 on Thursday, with the EUR/USD now attempting a rebound to 1.3650/55.

EUR/USD a bit better post-EMU data

The pair found some oxygen after EMU’s Consumer Confidence matched estimates at -12.7 in February while Business Climate, Economic Sentiment and gauges of the services and industrial sectors all surprised investors to the upside, bettering previous forecasts. In light of the recent results from M3 Money Supply in the euro area, Analyst Martin van Vliet at ING Bank NV, commented, “The still-low level of M3 growth is a reminder that the ECB may have to ease policy further to bring inflation back to its target level in the medium term”.

EUR/USD levels to consider

As of writing the pair is losing 0.20% at 1.3657 and a breakdown of 1.3642 (daily cloud top) would open the door to 1.3625 (50% of 1.3477-1.3773) and then 1.3585 (low Feb.13). On the flip side, the initial hurdle aligns at 1.3719 (10-d MA) followed by 1.3757 (high Feb.26) and finally 1.3768 (high Feb.25).

Flash: EUR/USD drops - was it fundamentals or politics? - UBS

The EUR/USD had a remarkable break through 1.37 on Wednesday, according to the UBS analyst team, which was caused by a surprising surge of new home sales in the US and rising political tensions in Russia and the Ukraine.
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