Forex: EUR/USD jumps, China data eyed

FXstreet.com (San Francisco) - The euro has extended its upward momentum to fresh 11-day highs versus the dollar early Thursday, reaching as high as 1.2867 and finding resistance in the 200-day EMA (today at 1.2864). Early reports indicate that stops were triggered above 1.2835 in EUR/USD, with next resistance noted at 1.2900 (50%, 1.3138/1.2660 downswing).

On the fundamental front, Dow Jones is now reporting that the San Francisco Fed Chief Williams just reiterated that he sees further scope for more bond buying, and that a scaling back of purchases would be counterproductive.

“Regardless the Greek chaos, the pair’s trend continues to be bullish at least in the short term,” says Valeria Bednarik, chief analyst at FXstreet.com. “Main risk factor in current Asian session, is Chinese manufacturing PMI: a positive reading may boost sentiment and push dollar one step lower against European rivals.”

If EUR/USD continues to trend upward in the global day ahead, a push above 1.29 could then target resistance at 1.2975 (Feb 16 low), while the analyst identifies bearish targets at 1.2800, 1.2770 and 1.2745.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS