EUR/USD: bulls need to act
EUR/USD is struggling to rise above $1.3700, but despite the better-than-expected GDP figures which came on Friday the bulls don’t feel very confident. This is the third time since the beginning the pair tries to settle above this area.
Euro’s trading at the edge of the daily Ichimoku Cloud. There’s MACD divergence and a negative candle pattern at H4. There are many daily highs in the $1.3710/40 which will provide resistance, so the bulls need a clear break above $1.3750 to go for $1.3800. Support lies at $1.3680, $1.3663, $1.3650 and $1.3620.
We don’t expect much movement today as US markets are closed for the bank holiday. Westpac points out that the EUR/USD will be especially data-sensitive. The most important release of the week for euro will be the euro zone’s PMIs due on Friday. Here’s more about US data this week. According to Westpac, the ECB Coeure’s saying that the ECB is seriously considering negative interest rates on deposits speaks in favor of selling in the $1.3750/3800. At the same time, the specialists don’t expect a sharp decline until USD becomes more attractive.
Chart. H4 EUR/USD