The EUR/USD pair finished last week around 1.3840 after moving sideways and remaining between its support and resistance. The pair opened this week with a 20 pip drop but as the European session started the drop was erased. The pair might be under big pressure before April 30 when the EU CPI data comes out. That data is closely watched because Mario Draghi (ECB president) believes that inflation is picking up. IF the data shows that inflation is still low, the ECB will be forced to add more stimulus to spur low inflation and depreciate the Euro. Today we should watch the German Monthly Report and U.S. Pending Home Sales at 2.00PM (GMT). Support is lying at 1.3785 and resistance at 1.3860.
The USD/JPY pair declined as the tension in Ukraine increased. The U.S. and European Union are about to add more sanctions against Russia. The purpose is to isolate people in the inner circle around Putin and have a significant impact to the economy. The Yen, as a safe-haven asset, is benefiting from the situation and pushing the price down. We can expect the pressure to remain as the tension continues. However, as soon as the crisis calms down the pair is expected to climb back up. Tomorrow the Japanese market will be closed due to a public holiday so we should expect lower volatility during the Asian session tonight. Support is lying at 101.90 and resistance at 102.70
April 28, 2014 – Forex News
Hot asset for today: EUR/USD
The EUR/USD pair finished last week around 1.3840 after moving sideways and remaining between its support and resistance. The pair opened this week with a 20 pip drop but as the European session started the drop was erased. The pair might be under big pressure before April 30 when the EU CPI data comes out. That data is closely watched because Mario Draghi (ECB president) believes that inflation is picking up. IF the data shows that inflation is still low, the ECB will be forced to add more stimulus to spur low inflation and depreciate the Euro. Today we should watch the German Monthly Report and U.S. Pending Home Sales at 2.00PM (GMT). Support is lying at 1.3785 and resistance at 1.3860.
The USD/JPY pair declined as the tension in Ukraine increased. The U.S. and European Union are about to add more sanctions against Russia. The purpose is to isolate people in the inner circle around Putin and have a significant impact to the economy. The Yen, as a safe-haven asset, is benefiting from the situation and pushing the price down. We can expect the pressure to remain as the tension continues. However, as soon as the crisis calms down the pair is expected to climb back up. Tomorrow the Japanese market will be closed due to a public holiday so we should expect lower volatility during the Asian session tonight. Support is lying at 101.90 and resistance at 102.70