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Forex pairs in this Article » EUR/USD (London) - Jane Foley, Senior Currency Strategist at Rabobank suggested that the EUR/USD is set to remain well supported on the back of USD weakness as the market looks to 2014 for the first Fed tapering…

Key Quotes:

“That said, the disappointing set of PMI data from the Eurozone this morning has served as a check on the EUR. The data have offered a reminder that the recovery in the region remains “very green” and that the policy of the ECB is set to remain very accommodative for some time yet. On the back of the PMI data this morning EUR/USD failed to push above the 1.3820 region. This area is now set to act as a firm resistance which could require a fresh turn of events to take it another leg higher. This could be in the form of another spate of weak US data”.

“…even though data that refers to the early October period is expected to be weak, the market has already pushed out expectations for Fed tapering into next year”.

“With bad news already in the price, investors have less reason to sell the USD. Supporting this view is the fact that the USD index (which is currently trading in the 79.24 area) is likely to find good support at the year’s low near the 78.92 area”.

“Overall there is reason to suspect that that EUR/USD may struggle to push higher from current levels in the near-term”.
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