Euro dollar rate today offers downside potential to traders

Modified: Wednesday, 02 April 2014 09:03 BST
Written by: Gary Howes

The euro exchange rate complex has benefited from good morning data, but the team at FuturesTechs suggest selling any strength ahead of further declines.

The euro dollar exchange rate has today moved higher thanks to some good data out of the Eurozone.

German Unemployment Change (Mar) read at -12K, better than the -10k expected.

Unemployment Rate s.a. (Mar) shifted down to 6.7%, had been expected to stay at 6.8%.

Eurozone Markit Manufacturing PMI (Mar) came in at an expected 53.

Sell recommendation on the euro dollar rate

Our daily trade idea from the team at FuturesTechs suggests traders take advantage of any strength witnessed in the EUR-USD and sell:

Short Term Trend: Bearish
Medium Trend: Bullish
Candlestick Chart says: Something close to a Doji was posted yesterday as the mixed outlook continues, although we did “nail” the high at our R2 and 1.3809, which was nice.
Profile Charts say: 1.3735 is the CHVN for now – the most actively traded price over the last 20 days.
Summary: You could sell in front of 1.3784 with a stop above 1.3809 today after these levels had a say yesterday. 1.3622 would be the target.

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Euro exchange rates - today

Despite soft inflation reading yesterday, EURUSD doesn’t show signs of dovish bets regarding the ECB meeting scheduled on Thursday.

EURUSD remained in the tight range of 1.3769/78 in Asia.

The sentiment remains mixed; traders are reluctant to take direction pre-ECB. Option bets are mixed with light stops seen below 1.3725 (Monday’s post-CPI low). On the upside, offers trail above 21-dma (1.3828).

EURGBP remains offered below its 50-dma (0.82782), bias is clearly on the downside.

Today, the economic calendar consists of March Final PMI Manufacturing readings out of Sweden, Norway, Spain, Switzerland, France, Italy, Germany, UK, Euro-Zone, Canada and US. Traders will also watch German, Italian and EZ March Unemployment, Canadian February Industrial Product and Raw Materials Price Index, US February Construction Spending, US April IBD / TIPP Economic Optimism and Italian March New Car Registrations.