8 Nov 2013
EUR/USD stabilizing around 1.3360
FXstreet.com (Edinburgh) - The shared currency closing in red for the second consecutive week on Friday, with the EUR/USD meandering around the mid 1.33s as the US session is drawing to a close.
EUR/USD extends the decline
The pair is extending the sharp sell-off from 2013 highs just beyond 1.3830 to Thursday’s sub-1.3300 levels, in a context where the offered tone around the single currency dominated amongst traders. The EUR attempted a rebound post-ECB meeting to the area of 1.3450, but it was rapidly faded after today’s solid report from the US labour market. “The ECB will continue to try imposing downward pressure on rates through its liquidity operations and through the use of rhetoric… However, the Fed is likely to continue dominating the EUR/USD cross and unless expectations for Fed tapering shift in significantly, we estimate that EUR/USD could continue to hold above the 1.30 level for the next 6 months or so. Our 12 mth EUR/USD forecast stands at 1.28”, observed Jane Foley, Strategist at Rabobank”.
EUR/USD levels to watch
As of writing the pair is now losing 0.46% at 1.3356 and a violation of 1.3295 (low 7 Nov.) would aim for 1.3294 (50% 1.2755-1.3833) and then 1.3254 (low Sep.13). On the upside, the immediate resistance lines up at 1.3548 (high Nov.6) ahead of 1.3589 (high Nov.1) and then 1.3591 (38.2% of 1.3833-1.3442).
EUR/USD extends the decline
The pair is extending the sharp sell-off from 2013 highs just beyond 1.3830 to Thursday’s sub-1.3300 levels, in a context where the offered tone around the single currency dominated amongst traders. The EUR attempted a rebound post-ECB meeting to the area of 1.3450, but it was rapidly faded after today’s solid report from the US labour market. “The ECB will continue to try imposing downward pressure on rates through its liquidity operations and through the use of rhetoric… However, the Fed is likely to continue dominating the EUR/USD cross and unless expectations for Fed tapering shift in significantly, we estimate that EUR/USD could continue to hold above the 1.30 level for the next 6 months or so. Our 12 mth EUR/USD forecast stands at 1.28”, observed Jane Foley, Strategist at Rabobank”.
EUR/USD levels to watch
As of writing the pair is now losing 0.46% at 1.3356 and a violation of 1.3295 (low 7 Nov.) would aim for 1.3294 (50% 1.2755-1.3833) and then 1.3254 (low Sep.13). On the upside, the immediate resistance lines up at 1.3548 (high Nov.6) ahead of 1.3589 (high Nov.1) and then 1.3591 (38.2% of 1.3833-1.3442).