24 Mar 2015
EUR/USD downtrend still intact? - Rabobank
FXStreet (Guatemala) - Jane Foley,Senior Currency Strategist explained that the approach of the first Fed rate hike for nine years was always going to raise volatility levels in the FX markets.
Key Quotes:
"But the price action in EUR/USD over recent weeks has been far more extravagant that most market players would have imagined."
"This week’s leap by EUR/USD back towards the 1.10 level can in part be explained by the extreme level of long USD and short EUR positions in the market."
"The sharp bounce can also be explained as a reaction to the very sharp downtrend that preceded it."
"As the chart shows, so far this week’s bounce higher in EUR/USD is still insufficient to break trend-line resistance meaning that it can be argued that the downtrend in EUR/USD is still intact."
Key Quotes:
"But the price action in EUR/USD over recent weeks has been far more extravagant that most market players would have imagined."
"This week’s leap by EUR/USD back towards the 1.10 level can in part be explained by the extreme level of long USD and short EUR positions in the market."
"The sharp bounce can also be explained as a reaction to the very sharp downtrend that preceded it."
"As the chart shows, so far this week’s bounce higher in EUR/USD is still insufficient to break trend-line resistance meaning that it can be argued that the downtrend in EUR/USD is still intact."