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Forex pairs in this Article » EUR/USD (Edinburgh) -The shared currency is confirming its bounce off intraday lows near 1.3460 on Tuesday, lifting the EUR/USD to the 1.3490/1.3500 band.

EUR/USD topped at 1.3570?

The pair is retreating for the third consecutive session on Tuesday, after the dovish tone from the FOMC meeting catapulted the pair to multi-month peaks around 1.3570, sparking a correction lower since. Sebastien Galy, Analyst at Societe Generale, commented, “Fed and ECB speakers have continued the repair work after the tapering fiasco, trying to pressure the front end of curves lower. Draghi is using the LTRO carrot having been beaten to it by the Fed. The outcome is to see EUR/USD fade very gently in line with the 2Y EUR/USD swap spread. The potential though is for more downside. Cyclical surprises would favor downside in EUR/USD”.

EUR/USD key levels

At the moment the pair is losing 0.03% at 1.3489 and a breakdown of 1.3453 (high Aug.20) would target 1.3399 (high Aug.28) en route to 1.3385 (high sep.16). On the other hand, the initial hurdle aligns at 1.3525 (hourly cloud top) followed by 1.3555 (high Sep.23) and finally 1.3569 (high Sep.19).
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