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24 Feb 2014
EUR/USD carving out a bullish NA session
FXStreet (Guatemala) - EUR/USD has gathered itself up from the lows seen down on the handle of 1.367 and is attempting to hold onto its course through resistance 1.3735/40.
In Europe, we had German IFO and Eurozone CPI data. The IFO measure rose from 110.6 to 111.3 (mkt 110.5). Strategists at TD Securities explained that not only was the breakdown similar to the ZEW index, which also saw stronger current sentiment, but an IFO economist noted that the weakness in expectations was due to turbulence in emerging markets (which was also cited by a ZEW spokesperson), and not any particular domestic issues. “For the final reading of Eurozone CPI, it was revised 0.1ppts higher from the flash estimate to 0.8% Y/Y in January. This Friday brings the flash estimate for February, where we think that the risks lie to the downside due to negative base effects from the spike in oil prices in Feb 2013”. US Composite services PMI fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. Dallas Fed manufacturing index Fell to 0.3 in February from 3.8 in January.
EUR/USD Levels
The 20 DMA is 1.3637, the 50 DMA is 1.3651 and the 200 DMA is 1.3419. RSI (14) reads 56.65. Supports are ascending from 1.3674, 1.3681, 1.3702, 1.3720, 1.3742, 1.3748, 1.3763, 1.3776 and 1.3819.
In Europe, we had German IFO and Eurozone CPI data. The IFO measure rose from 110.6 to 111.3 (mkt 110.5). Strategists at TD Securities explained that not only was the breakdown similar to the ZEW index, which also saw stronger current sentiment, but an IFO economist noted that the weakness in expectations was due to turbulence in emerging markets (which was also cited by a ZEW spokesperson), and not any particular domestic issues. “For the final reading of Eurozone CPI, it was revised 0.1ppts higher from the flash estimate to 0.8% Y/Y in January. This Friday brings the flash estimate for February, where we think that the risks lie to the downside due to negative base effects from the spike in oil prices in Feb 2013”. US Composite services PMI fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. Dallas Fed manufacturing index Fell to 0.3 in February from 3.8 in January.
EUR/USD Levels
The 20 DMA is 1.3637, the 50 DMA is 1.3651 and the 200 DMA is 1.3419. RSI (14) reads 56.65. Supports are ascending from 1.3674, 1.3681, 1.3702, 1.3720, 1.3742, 1.3748, 1.3763, 1.3776 and 1.3819.