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14 Feb 2014
Flash: EURUSD; Fade the Range Extreme? – TD Securities
FXStreet (Barcelona) - Strategists at TD Securities explained that EUR/USD has managed to strengthen this week (somewhat surprisingly, considering the pattern noted above) and will likely close out the week above the 100-day MA (1.3613).
Quotes:
“But it’s been a struggle for the EUR to hold on to 1.37+ levels since the start of the year and we are still more inclined to look to fade range extremes than look for extended moves in either direction at the moment”.
“Declining core EZ inflation expectations may yet prove to be a worry for policy makers and we may see a little more soft jaw-boning from ECB policy makers (e.g. Noyer’s remark this week that EUR strength was “a bit curious”) if the EUR remains elevated”.
Quotes:
“But it’s been a struggle for the EUR to hold on to 1.37+ levels since the start of the year and we are still more inclined to look to fade range extremes than look for extended moves in either direction at the moment”.
“Declining core EZ inflation expectations may yet prove to be a worry for policy makers and we may see a little more soft jaw-boning from ECB policy makers (e.g. Noyer’s remark this week that EUR strength was “a bit curious”) if the EUR remains elevated”.