30 Aug 2013
Flash: EUR/USD poised for downtrend in week ahead – Westpac
FXstreet.com (New York) - Sean Callow, a Global FX Strategist at Westpac analyzes the outlook of the EUR/USD in the week ahead.
Key quotes
“The EUR/USD appears vulnerable to a prolonged downside break during the week ahead. The 1.3400 level should contain it on the top side, while 1.3300 is at risk of giving way to a larger decline. The EU-US 2yr swap spread peaked mid-August and supports the bearish view.”
Moreover, “resurfaced strains in Italy’s coalition as well as the potential for military conflict in Syria should keep risk sentiment, and therefore the EUR/USD, in check.”
Key quotes
“The EUR/USD appears vulnerable to a prolonged downside break during the week ahead. The 1.3400 level should contain it on the top side, while 1.3300 is at risk of giving way to a larger decline. The EU-US 2yr swap spread peaked mid-August and supports the bearish view.”
Moreover, “resurfaced strains in Italy’s coalition as well as the potential for military conflict in Syria should keep risk sentiment, and therefore the EUR/USD, in check.”