9 May 2014
EUR/USD buyers left the building!
FXStreet (Edinburgh) - The weakness remains intact around the EUR at the end of the week, currently dragging the EUR/USD to fresh 1-month lows near 1.3750.
EUR/USD bearish now?
The pair extends its deep pullback from recent ytd tops near 1.4000 the figure, against the backdrop of mounting selling pressure post-ECB meeting. Spot still remains under the sedative effects of Draghi’s presser on Thursday, where he opened the door to further easing in the next meeting in June. “There is strong reason to suspect that ECB action will not have the power to trigger a sustained or sharp downside move in EUR/USD even if policy is adjusted next month. As long as dollar sentiment is weak we expect EUR/USD to remain well supported. We maintain a forecast of EUR/USD1.39 on a 1 month view and while we expect that the USD will win back some ground medium time, we have adjusted higher our 12 mth forecast from EUR/USD1.28 to 1.30”, commented Jane Foley, Senior Currency Strategist at Rabobank.
EUR/USD levels to consider
The pair is now losing 0.52% at 1.3767 with the immediate support at 1.3740 (100-d MA) ahead of 1.3738 (low Apr.8) and finally 1.3722 (daily cloud base). On the upside, a break above 1.3844 (high May 9) would target 1.3900 (psychological level) and then 1.3997 (2014 highs May 8).
EUR/USD bearish now?
The pair extends its deep pullback from recent ytd tops near 1.4000 the figure, against the backdrop of mounting selling pressure post-ECB meeting. Spot still remains under the sedative effects of Draghi’s presser on Thursday, where he opened the door to further easing in the next meeting in June. “There is strong reason to suspect that ECB action will not have the power to trigger a sustained or sharp downside move in EUR/USD even if policy is adjusted next month. As long as dollar sentiment is weak we expect EUR/USD to remain well supported. We maintain a forecast of EUR/USD1.39 on a 1 month view and while we expect that the USD will win back some ground medium time, we have adjusted higher our 12 mth forecast from EUR/USD1.28 to 1.30”, commented Jane Foley, Senior Currency Strategist at Rabobank.
EUR/USD levels to consider
The pair is now losing 0.52% at 1.3767 with the immediate support at 1.3740 (100-d MA) ahead of 1.3738 (low Apr.8) and finally 1.3722 (daily cloud base). On the upside, a break above 1.3844 (high May 9) would target 1.3900 (psychological level) and then 1.3997 (2014 highs May 8).