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1 Nov 2013
EUR/USD on its way to 1.3500?
FXstreet.com (Edinburgh) -The selling pressure around the bloc currency is now intensifying on Friday, dragging the EUR/USD to test fresh 2-week lows around 1.3520.
EUR/USD remains offered
The offered bias around the euro strongly emerged after the surprising tone from the FOMC on Wednesday and accelerated yesterday after poor data from Germany and the EMU. Speculations keep building up regarding the imminence of some action by the ECB in its next monetary policy meeting in the upcoming week, keeping buyers at bay and allowing an extension of the current sell-off. “So if the ECB cuts it probably will not be enough to drive the euro weaker versus the dollar but should certainly be enough to temper EUR/USD gains higher from here. The risk of a breach of 1.4000 has certainly been reduced considerably for now”, noted Derek Halpenny, European Head of Global Markets Research at BTMU.
EUR/USD key levels
As of writing the pair is retreating 0.41% at 1.3528 and a break below 1.3514 (low Oct.17) would open the door to 1.3472 (low Oct.16) and finally 1.3468 (50% of 1.3105-1.3833). On the upside, the initial resistance aligns at 1.3589 (high Nov.1) followed by 1.3643 (MA21d) and then 1.3696 (low Oct.30).
EUR/USD remains offered
The offered bias around the euro strongly emerged after the surprising tone from the FOMC on Wednesday and accelerated yesterday after poor data from Germany and the EMU. Speculations keep building up regarding the imminence of some action by the ECB in its next monetary policy meeting in the upcoming week, keeping buyers at bay and allowing an extension of the current sell-off. “So if the ECB cuts it probably will not be enough to drive the euro weaker versus the dollar but should certainly be enough to temper EUR/USD gains higher from here. The risk of a breach of 1.4000 has certainly been reduced considerably for now”, noted Derek Halpenny, European Head of Global Markets Research at BTMU.
EUR/USD key levels
As of writing the pair is retreating 0.41% at 1.3528 and a break below 1.3514 (low Oct.17) would open the door to 1.3472 (low Oct.16) and finally 1.3468 (50% of 1.3105-1.3833). On the upside, the initial resistance aligns at 1.3589 (high Nov.1) followed by 1.3643 (MA21d) and then 1.3696 (low Oct.30).