Forex forecast

EUR/USD Forecast: no clear direction yet

22.04.2014 16:20:41

The EUR/USD holds nailed around 1.3800, having recovered some ground this Tuesday, albeit limited to an ultra tight range. So far, minor data coming from the EU showed Construction Output fell, while ECB’s Coeure insisted they have room to cut rates further in an interview, adding nothing new to what we already know.

Technically, the pair remains unable to set a clear direction with the 4 hours chart showing pricerecovering from the strong support area around 1.3780/90 and approaching its 20 SMA now acting as dynamic resistance right above current price. Indicators in the same time frame head slightly higher albeit in neutral territory, showing no real strength.

Price needs to actually extend beyond 1.3825 static resistance level to be able to catch up momentum,eyeing 1.3860 as immediate short term target. The downside remains well protected by 1.3780, with an unlikely break below favoring a test of the 1.3730 price zone.