Filed Under:
Forex pairs in this Article » EUR/USD (Córdoba) - The EUR/USD saw a short-lived drop toward the 1.3740 zone during the European session but quickly found buyers and bounced to fresh daily highs.

The EUR/USD managed to rise from a low of 1.3740 to a high of 1.3773 as fast as it dropped and finally settled around the flat line. At time of writing, the EUR/USD is trading at the 1.3760 zone, virtually unchanged since opening, as the pair enjoys a phase of consolidation, albeit not without intraday volatility, as investors wait next week FOMC meeting.

EUR/USD strength might not persist in 2014

Some analysts point out that recent EUR/USD strength could be due to year-end flows and the pair might retrace gains next year as the Fed begins to scale back its bond-buying program. In this line, Jane Foley, analyst at Rabobank said: "While we anticipate that EUR/USD could find its way back to 1.28 on a 12 month view, we expect that it could take another 9 months or so to break below 1.30".

EUR/USD near term levels

In terms of technical levels, the EUR/USD could find immediate resistances at 1.3773 (daily high), 1.3795 (Dec 10 high) and 1.3832 (Oct 25 high). On the flip side, supports are seen at 1.3740 (Dec 11 & 10 lows) and 1.3700 (psychological level) ahead of 1.3655 (10-day SMA).
comments powered by Disqus