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Forex pairs in this Article » EUR/USD (Edinburgh) - It was nice, although ephemeral. The EUR/USD is now heavily falling to test session lows around 1.3750/45 after rapidly climbing to print intraday highs beyond 1.3810.

EUR/USD back to square one

The pair is now challenging weekly lows in the vicinity of 1.3750 as volatility is taking centre stage and the selling interest is gathering steam. The cautious tone now prevails amongst traders ahead of the next risk event for the pair: tomorrow’s FOMC gathering, due in the European evening. Eric Green, Analyst at TD Securities, assessed “The big risk for the market is not that the Fed signals looser policy. The bigger risk is the view that tapering may come at any time, even if we suspect calendar effects suggest that time will not come until next March”.

EUR/USD key levels

The pair is now losing 0.27% at 1.3750 with the next support at 1.3741 (low Oct.23). On the upside, the first resistance aligns at 1.3833 (2013 high Oct.25) followed by 1.3859 (high Nov.11 2011) and then 1.3871 (high Nov.1 2011).
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