27 May 2014
EUR/USD bouncing off 1.3610
FXStreet (Edinburgh) - The shared currency is now rapidly losing the grip on Tuesday, although the EUR/USD now managing to rebound from fresh lows in sub-1.3620 levels, last seen in mid-January.
EUR/USD in multi-month lows
Auspicious results from the US economy gave extra oxygen to the greenback, dragging spot to test the area of 1.3615/10: Durable Goods Orders, Consumer Confidence, Services PMI gauged by Markit and the S&P/Case-Shiller index all came in above estimates and boosted sentiment. “After the weekend speech by President Draghi we expect negative interest rates and potentially targeted measures to help alleviate credit constraints. The market has digested this risk but EUR remains vulnerable to further downside, particularly if strong inflows begin to fade… We hold a year-end EUR forecast of 1.30”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
At the moment the pair is losing 0.18% at 1.3621 and a breakdown of 1.3585 (low Feb.13) would target 1.3563 (low Feb.12) en route to 1.3552 (low Feb.7). On the upside, the initial resistance aligns at 1.3669 (high May 27) ahead of 1.3675 (Tenkan Sen) and then 1.3688 (high May 22).
EUR/USD in multi-month lows
Auspicious results from the US economy gave extra oxygen to the greenback, dragging spot to test the area of 1.3615/10: Durable Goods Orders, Consumer Confidence, Services PMI gauged by Markit and the S&P/Case-Shiller index all came in above estimates and boosted sentiment. “After the weekend speech by President Draghi we expect negative interest rates and potentially targeted measures to help alleviate credit constraints. The market has digested this risk but EUR remains vulnerable to further downside, particularly if strong inflows begin to fade… We hold a year-end EUR forecast of 1.30”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to watch
At the moment the pair is losing 0.18% at 1.3621 and a breakdown of 1.3585 (low Feb.13) would target 1.3563 (low Feb.12) en route to 1.3552 (low Feb.7). On the upside, the initial resistance aligns at 1.3669 (high May 27) ahead of 1.3675 (Tenkan Sen) and then 1.3688 (high May 22).