Price broke the resistance level, reaching 1.4270
City Index April 4, 2011 12:30 PM
<p>EUR/USD Range: 1.4217 – 1.4269 Support: 1.4200 Resistance: 1.4300 Price broke the resistance level, reaching 1.4270. Last week, Euro soared after initially testing 1.4050 strong support, lows were […]</p>
Price broke the resistance level, reaching 1.4270. Last week, Euro soared after initially testing 1.4050 strong support, lows were reached following better than expected US Nonfarm Payrolls’ numbers. However, New York FED president Dudley stating there is no need to change current US economic policy, sent the cross to test weekly high around 1.4250 shortly after. Euro traders are fully engrossed in interest rate expectations. That said, with the market pricing in a 131bps of rate hikes in the coming 12 months and 44 percent chance of a 50bp boost next Thursday (a 25bp hike is seen as a certainty); expectations may be set too high. What happens if we have a quarter-percent hike and at least a few months’ pause?
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