Forex: EUR/USD erases gains by end of European morning

FXstreet.com (Barcelona) - The EUR/USD grew to 1.2837 high after finding support at 1.2790 low just ahead of the European opening. The market has retraced its gains back to the opening price at 1.2818. During the session, Spanish PM Rajoy said the economy is set to grow in 2014 and German finance minister expects the Memorandum of Understanding with Cyprus to be completed by April 9th and the Bundestag to vote on it from April 15th.

The economic calendar released the preliminary report of EMU CPI in March, coming in at 1.7% from 1.8%, as expected. The US session will provide the update of the ADP employment in March, which may be used as an indication for tomorrow’s nonfarm payrolls. The ISM non-manufacturing PMI in March is also due today.

“We think today the price may correct yesterday‘s descending movement towards the level of 1.2830 and then continue falling down to reach the target at 1.2700. Later, in our opinion, the pair may start forming a pivot point for a reverse”, wrote Roboforex.com analyst Igor Sayadov.