EUR/USD continues rebound from $1.3700

Solid European economic data has helped stretch the euro’s upward move into a second day.

Once again, the $1.3700 level has proven to be very supportive for EUR/USD. As the pair moves higher for the second day in a row, the 50-day moving average becomes the next hurdle to clear before it again attempts to break above $1.3800 – a task that was too much for it last week. We are now just over 24 hours away from the release of the minutes from the last FOMC meeting, and the nuances from that will be analysed extensively.

As time has dragged on, the issue of Crimea has attracted fewer and fewer headlines. However the latest developments, with unrest in Donetsk and the increasing threat of disruption from Russian sympathisers, mean that this issue may once again be drawn back to the forefront of traders’ minds.

Looking at the price action, the relative strength indictor is still mid-range and far from overbought. The currency looks to be ranging between $1.37 & $1.38, and is still on an upward trajectory. Only a close below the $1.37 level would lead to a reassessment.

Spot FX EUR/USD chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts

Find out more about