EUR/USD is drifting higher…so far

FXStreet (Moscow) - EUR/USD spent the morning in consolidation drifting slightly higher to 1.3882 from 1.3869 at the open.


Russia and Ukraine may become the EMU trouble

Despite the overwhelming optimism the market got from the recent ECB meeting, the pair may have realized its full potential of the rise for the moment. The unstable situation at the EM markets only worsened by geopolitical conflicts will limit the upside for the nearest term, and the close neighborhood of the conflicting Russia and Ukraine put the further fragile recovery of Europe under question. The scheduled for release French industrial production may only support these fears as the economy is still on the brink of falling down to recession again. Thus, the downward move in short-term is not ruled out with initial target at 1.3844 support level paving the way to 1.3815.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3880, with support below at 1.3844, 1.3815 and 1.3779, with resistance above at 1.3909, 1.3945, and 1.3974. Hourly Moving Averages are bullish, with the 200SMA at 1.3758 and the daily 20EMA bullish at 1.3731. Hourly RSI is neutral at 60.