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4 Nov 2013
Flash: EUR/USD bearish momentum may extend short term - BBH
FXstreet.com (Barcelona) - The discouraging EZ data last week, paired with a less dovish interpretation of the FOMC statement, means that bearish momentum in the EUR/USD may extend very short term, in view of Marc Chandler, Head of FX at BBH.
Key Quotes
"The break of the $1.3600 area Thursday in EUR/USD opened up a deeper move to the October 16 low near $1.3475, which is also around where the 50-day MA comes in."
"We think that once the ECB disappoints expectations for cuts and markets become once again more comfortable with the idea FED “tapril” (i.e. tapering in April), the dollar will lose some of its momentum. Yet the technical picture for the euro continues to deteriorate."
"The $1.3600 area also coincides with the 50% retracement objective from the larger September-October rise. Below that, the 62% level comes in near $1.3385, and a break of that would target the September 6 low near $1.3100."
Key Quotes
"The break of the $1.3600 area Thursday in EUR/USD opened up a deeper move to the October 16 low near $1.3475, which is also around where the 50-day MA comes in."
"We think that once the ECB disappoints expectations for cuts and markets become once again more comfortable with the idea FED “tapril” (i.e. tapering in April), the dollar will lose some of its momentum. Yet the technical picture for the euro continues to deteriorate."
"The $1.3600 area also coincides with the 50% retracement objective from the larger September-October rise. Below that, the 62% level comes in near $1.3385, and a break of that would target the September 6 low near $1.3100."