Back
20 Mar 2014
EUR/USD breaches 1.3800
FXStreet (Edinburgh) - The selling interest around the EUR is picking up pace now, driving the EUR/USD to fall below the critical support at 1.3800 the figure.
EUR/USD weaker, eyes on US docket
Spot is losing the grip following the rest of the risk-associated assets while markets continue to digest the hawkish tone from the FOMC statement. Recall that many FOMC members see the first rate hike in 2015 (at least 1% by year-end), in a context where the US economy continues to strengthen. According to Jane Foley, Senior Currency Strategist at Rabobank, “the EUR has earned the title of a resilient currency and is unlikely to give back ground to the USD easily. Supporting the EUR is a very generous current account surplus… Also, supporting the EUR is the turnaround in the political outlook for EMU, signs of economic recovery and doubts as to whether the ECB will ease policy again. While forthcoming Fed speakers have the capacity to inject some volatility into EUR/USD near-term, on the assumption that US data strengthens into the spring we forecast EUR/USD at 1.36 in a 3 mth view”.
EUR/USD significant levels
The pair is now retreating 0.25% at 1.3796 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).
EUR/USD weaker, eyes on US docket
Spot is losing the grip following the rest of the risk-associated assets while markets continue to digest the hawkish tone from the FOMC statement. Recall that many FOMC members see the first rate hike in 2015 (at least 1% by year-end), in a context where the US economy continues to strengthen. According to Jane Foley, Senior Currency Strategist at Rabobank, “the EUR has earned the title of a resilient currency and is unlikely to give back ground to the USD easily. Supporting the EUR is a very generous current account surplus… Also, supporting the EUR is the turnaround in the political outlook for EMU, signs of economic recovery and doubts as to whether the ECB will ease policy again. While forthcoming Fed speakers have the capacity to inject some volatility into EUR/USD near-term, on the assumption that US data strengthens into the spring we forecast EUR/USD at 1.36 in a 3 mth view”.
EUR/USD significant levels
The pair is now retreating 0.25% at 1.3796 and a breakdown of 1.3720 (low Mar.6) would aim for 1.3707 (low ar.5) and finally 1.3694 (low Feb.28). On the flip side, the initial resistance aligns at 1.3845 (high Mar.20) ahead of 1.3882 (10-d MA) and then 1.3935 (high Mar.19).