24 Oct 2013
EUR/USD back around 1.3800
FXstreet.com (Edinburgh) -After hitting fresh 23-month high near 1.3830, the EUR/USD is now deflating to the area just below the key handle at 1.3800.
EUR/USD remains bid at current levels
The pair is extending its bullish momentum sparked in the aftermath of the US fiscal deal, first to the vicinity of 1.3700 the figure and this week beyond the 1.3800 handle, along with fresh almost 2-year highs. According to S.Osborne and G.Moore, Strategists at TD Securities, “EUR/USD has made a lot of progress over the past week, and some decent PMI releases and additional comments from ECB officials downplaying the prospects of additional LTROs have added modestly to the lift in the Single currency. Momentum is quite strong now for EUR/USD and with the pair now trading notably above the key 1.3711 level, there is not much holding it back from a move to 1.40. In a broader fundamental sense, the EUR continues to look rich to us—particularly relative to short term rate spreads. It has not shown signs of topping out yet however”.
EUR/USD levels to watch
At the moment the pair is up 0.16% at 1.3799 and a break above 1.3824 (2013 high Oct.24) would target 1.3859 (high Nov.11 2011) en route to 1.3871 (high Nov.1 2011). On the flip side, the initial support aligns at 1.3741 (low Oct.23) followed by 1.3700 (psychological level) and finally 1.3662 (low Oct.22).
EUR/USD remains bid at current levels
The pair is extending its bullish momentum sparked in the aftermath of the US fiscal deal, first to the vicinity of 1.3700 the figure and this week beyond the 1.3800 handle, along with fresh almost 2-year highs. According to S.Osborne and G.Moore, Strategists at TD Securities, “EUR/USD has made a lot of progress over the past week, and some decent PMI releases and additional comments from ECB officials downplaying the prospects of additional LTROs have added modestly to the lift in the Single currency. Momentum is quite strong now for EUR/USD and with the pair now trading notably above the key 1.3711 level, there is not much holding it back from a move to 1.40. In a broader fundamental sense, the EUR continues to look rich to us—particularly relative to short term rate spreads. It has not shown signs of topping out yet however”.
EUR/USD levels to watch
At the moment the pair is up 0.16% at 1.3799 and a break above 1.3824 (2013 high Oct.24) would target 1.3859 (high Nov.11 2011) en route to 1.3871 (high Nov.1 2011). On the flip side, the initial support aligns at 1.3741 (low Oct.23) followed by 1.3700 (psychological level) and finally 1.3662 (low Oct.22).